Document:

<PAGE>

                                                                     Exhibit 4.2

                         REGISTRATION RIGHTS AGREEMENT

                         Dated as of February 21, 2001

                                 By and Among

                          CONSTELLATION BRANDS, INC.,

                                   as Issuer

                                      and

                          THE GUARANTORS named herein

                                      and

                            CHASE SECURITIES INC.,
                          SALOMON SMITH BARNEY INC.,
                    CREDIT SUISSE FIRST BOSTON CORPORATION
                                      and
                           SCOTIA CAPITAL (USA) INC.

                             as Initial Purchasers

                                 $200,000,000

                           8% Senior Notes due 2008
<PAGE>

                               TABLE OF CONTENTS
                               -----------------

<TABLE>
<CAPTION>
                                                                            Page
                                                                            ----

<S>                                                                         <C>
1.   Definitions.........................................................     1

2.   Exchange Offer......................................................     5

3.   Shelf Registration..................................................     8

4.   Additional Interest.................................................    10

5.   Registration Procedures.............................................    11

6.   Registration Expenses...............................................    20

7.   Indemnification.....................................................    21

8.   Rules 144 and 144A..................................................    23

9.   Underwritten Registrations..........................................    23

10.  Miscellaneous.......................................................    24

     (a)  No Inconsistent Agreements.....................................    24
     (b)  Adjustments Affecting Registrable Notes........................    24
     (c)  Amendments and Waivers.........................................    24
     (d)  Notices........................................................    25
     (e)  Successors and Assigns.........................................    26
     (f)  Counterparts...................................................    26
     (g)  Headings.......................................................    26
     (h)  Governing Law; Jurisdiction....................................    26
     (i)  Severability...................................................    27
     (j)  Securities Held by the Issuers or Their Affiliates.............    27
     (k)  Third Party Beneficiaries......................................    27
     (l)  Entire Agreement...............................................    27
     (m)  Additional Amounts of Securities...............................    27
</TABLE>
                                      (i)
<PAGE>

                         REGISTRATION RIGHTS AGREEMENT

          This Registration Rights Agreement (the "Agreement") is dated as of
                                                   ---------
February 21, 2001 by and among CONSTELLATION BRANDS, INC., a Delaware
corporation (the "Company"), Batavia Wine Cellars, Inc., Canandaigua Wine
                  -------
Company, Inc., Canandaigua Europe Limited, Roberts Trading Corp., Polyphenolics,
Inc. and Barton Distillers Import Corp., each a New York corporation, Barton
Incorporated, Barton Brands, Ltd., Barton Financial Corporation and Franciscan
Vineyards, Inc., each a Delaware corporation, Barton Beers, Ltd., a Maryland
corporation, Barton Brands of California, Inc., a Connecticut corporation,
Barton Brands of Georgia, Inc., a Georgia corporation, Stevens Point Beverage
Co., a Wisconsin corporation, Monarch Import Company and Barton Canada, Ltd.,
each an Illinois corporation, Allberry, Inc., Cloud Peak Corporation, M.J. Lewis
Corp. and Mt. Veeder Corporation, each a California corporation, Canandaigua
Limited, a corporation organized under the laws of England and Wales, and
Canandaigua B.V., a corporation organized under the laws of The Netherlands
(collectively, the "Guarantors") and Chase Securities Inc., Salomon Smith Barney
                    ----------
Inc., Credit Suisse First Boston Corporation and Scotia Capital (USA) Inc. (the
"Initial Purchasers")
 ------------------

          This Agreement is entered into in connection with the Purchase
Agreement, dated as of February 15, 2001 (the "Purchase Agreement"), by and
                                               ------------------
among the Company, the Guarantors and the Initial Purchasers, which provides for
the sale by the Company to the Initial Purchasers of an aggregate of
$200,000,000 aggregate principal amount of the Company's 8% Senior Notes due
2008 (the "Notes").  The Notes are being issued pursuant to the Indenture, dated
           -----
as of February 21, 2001, (the "Indenture"), among the Company, Guarantors and
                               ---------
The Bank of New York, as trustee (the "Trustee").  The Notes are guaranteed
                                       -------
(the "Guarantees") by the Guarantors.  The Notes and the Guarantees are
      ----------
collectively referred to herein as the "Securities".
                                        ----------

          In order to induce the Initial Purchasers to enter into the Purchase
Agreement, the Company and the Guarantors have agreed to provide the
registration rights set forth in this Agreement for the benefit of the Initial
Purchasers and any subsequent holder or holders of the Securities.  The
execution and delivery of this Agreement is a condition to the Initial
Purchasers' obligation to purchase the Securities under the Purchase Agreement.

          The parties hereby agree as follows:

          1.   Definitions.  As used in this Agreement, the following terms
               -----------
shall have the following meanings:

          Additional Interest:  See Section 4 hereof.
          -------------------

          Advice:  See Section 5 hereof.
          ------

          Agreement:  See the introductory paragraphs hereto.
          ---------

<PAGE>

          Applicable Period:  See Section 2 hereof.
          -----------------

          Business Day:  Any day that is not a Saturday, Sunday or a day on
          ------------
which banking institutions in New York are authorized or required by law to be
closed.

          Company:  See the introductory paragraphs hereto.
          -------

          Effectiveness Date:  The 180th day after the Issue Date; provided,
          ------------------                                       --------
however, that with respect to any Shelf Registration, the Effectiveness Date
-------
shall be the 60th day after the Filing Date with respect thereto.

          Effectiveness Period:  See Section 3 hereof.
          --------------------

          Event Date:  See Section 4 hereof.
          ----------

          Exchange Act:  The Securities Exchange Act of 1934, as amended, and
          ------------
the rules and regulations of the SEC promulgated thereunder.

          Exchange Notes:  See Section 2 hereof.
          --------------

          Exchange Offer:  See Section 2 hereof.
          --------------

          Exchange Offer Registration Statement:  See Section 2 hereof.
          -------------------------------------

          Filing Date:  (A) If no Exchange Offer Registration Statement has been
          -----------
filed by the Issuer pursuant to this Agreement, the 90th day after the Issue
Date; and (B) with respect to a Shelf Registration Statement, the 60th day after
the delivery of a Shelf Notice as required pursuant to Section 2(c) hereof.

          Guarantees:  See introductory paragraphs hereto.
          ----------

          Guarantors:  See introductory paragraphs hereto.
          ----------

          Holder:  Any holder of a Registrable Note or Registrable Notes.
          ------

          Indemnified Person:  See Section 7(c) hereof.
          ------------------

          Indemnifying Person:  See Section 7(c) hereof.
          -------------------

          Indenture:  See introductory paragraphs hereto.
          ---------

          Initial Purchasers:  See introductory paragraphs hereto.
          ------------------

          Initial Shelf Registration:  See Section 3(a) hereof.
          --------------------------

                                      -2-
<PAGE>

          Inspectors:  See Section 5(n) hereof.
          ----------

          Issue Date:  February 21, 2001.
          ----------

          NASD:  See Section 5(s) hereof.
          ----

          Notes:  See the introductory paragraphs hereto.
          -----

          Participant:  See Section 7(a) hereof.
          -----------

          Participating Broker-Dealer:  See Section 2 hereof.
          ---------------------------

          Person:  An individual, trustee, corporation, partnership, joint stock
          ------
company, trust, unincorporated association, union, business association, firm or
other legal entity.

          Private Exchange:  See Section 2 hereof.
          ----------------

          Private Exchange Notes:  See Section 2 hereof.
          ----------------------

          Prospectus:  The prospectus included in any Registration Statement
          ----------
(including, without limitation, any prospectus subject to completion and a
prospectus that includes any information previously omitted from a prospectus
filed as part of an effective registration statement in reliance upon Rule 430A
promulgated under the Securities Act and any term sheet filed pursuant to Rule
434 under the Securities Act), as amended or supplemented by any prospectus
supplement, and all other amendments and supplements to the Prospectus,
including post-effective amendments, and all material incorporated by reference
or deemed to be incorporated by reference in such Prospectus.

          Purchase Agreement:  See the introductory paragraphs hereto.
          ------------------

          Records:  See Section 5(n) hereof.
          -------

          Registrable Notes:  Each Security upon its original issuance and at
          -----------------
all times subsequent thereto, each Exchange Note as to which Section 2(c)(iv)
hereof is applicable upon original issuance and at all times subsequent thereto
and each Private Exchange Note (and related Guarantees) upon original issuance
thereof and at all times subsequent thereto, until in the case of any such
Security, Exchange Note or Private Exchange Note, as the case may be, the
earliest to occur of (i) a Registration Statement (other than, with respect to
any Exchange Note as to which Section 2(c)(iv) hereof is applicable, the
applicable Exchange Offer Registration Statement) covering such Security,
Exchange Note or such Private Exchange Note has been declared effective by the
SEC and such Security, Exchange Note or such Private Exchange Note, as the case
may be, has  been disposed of in accordance with such effective Registration
Statement, (ii) such Security has been exchanged for an Exchange Note or
Exchange Notes (and related Guarantees) pursuant to an Exchange Offer which may
be resold without

                                      -3-
<PAGE>

restriction under state and federal securities laws, (iii) such Security,
Exchange Note or Private Exchange Note (and related Guarantees), as the case may
be, ceases to be outstanding for purposes of the Indenture, or (iv) such
Security, Exchange Note or Private Exchange Note (and related Guarantees), as
the case may be, may be resold without restriction pursuant to Rule 144 (or any
similar provision then in force) under the Securities Act.

          Registration Statement:  Any registration statement of the Company and
          ----------------------
the Guarantors that covers any of the Securities, the Exchange Notes (and
related Guarantees) or the Private Exchange Notes (and related Guarantees) filed
with the SEC under the Securities Act, including the Prospectus, amendments and
supplements to such registration statement, including post-effective amendments,
all exhibits, and all material incorporated by reference or deemed to be
incorporated by reference in such registration statement.

          Rule 144:  Rule 144 promulgated under the Securities Act, as such Rule
          --------
may be amended from time to time, or any similar rule (other than Rule 144A) or
regulation hereafter adopted by the SEC providing for offers and sales of
securities made in compliance therewith resulting in offers and sales by
subsequent holders that are not affiliates of an issuer of such securities being
free of the registration and prospectus delivery requirements of the Securities
Act.

          Rule 144A:  Rule 144A promulgated under the Securities Act, as such
          ---------
Rule may be amended from time to time, or any similar rule (other than Rule 144)
or regulation hereafter adopted by the SEC.

          Rule 415:  Rule 415 promulgated under the Securities Act, as such Rule
          --------
may be amended from time to time, or any similar rule or regulation hereafter
adopted by the SEC.

          SEC:  The Securities and Exchange Commission.
          ---

          Securities:  See the introductory paragraphs hereof.
          ----------

          Securities Act:  The Securities Act of 1933, as amended, and the rules
          --------------
and regulations of the SEC promulgated thereunder.

          Shelf Notice:  See Section 2 hereof.
          ------------

          Shelf Registration:  See Section 3(b) hereof.
          ------------------

          Subsequent Shelf Registration:  See Section 3(b) hereof.
          -----------------------------

          TIA:  The Trust Indenture Act of 1939, as amended.
          ---

                                      -4-
<PAGE>

          Trustee:  The trustee under the Indenture and, if existent, the
          -------
trustee under any indenture governing the Exchange Notes (and the related
Guarantees) and Private Exchange Notes (and the related Guarantees) (if any).

          Underwritten registration or underwritten offering:  A registration in
          --------------------------------------------------
which securities of the Company are sold to an underwriter for reoffering to the
public.

          2.   Exchange Offer.  (a)  The Company and the Guarantors shall file
               --------------
with the SEC, no later than the Filing Date, a Registration Statement (the
"Exchange Offer Registration Statement") on an appropriate registration form
 -------------------------------------
with respect to a registered offer (the "Exchange Offer") to exchange any and
                                         --------------
all of the Registrable Notes for a like aggregate principal amount of debt
securities of the Company (guaranteed by the Guarantors) which are identical in
all material respects to the Securities (the "Exchange Notes"), except that (i)
                                              --------------
the Exchange Notes (and the Guarantors' Guarantees thereof) shall have been
registered pursuant to an effective Registration Statement under the Securities
Act, shall not contain provisions for Additional Interest, and shall contain no
restrictive legend thereon, (ii) interest thereon shall accrue from the last
date on which interest was paid on the Notes or, if no such interest has been
paid, from the Issue Date, and which are entitled to the benefits of the
Indenture or a trust indenture which is identical in all material respects to
the Indenture (other than such changes to the Indenture or any such identical
trust indenture as are necessary to comply with any requirements of the SEC to
effect or maintain the qualification thereof under the TIA) and which, in either
case, has been qualified under the TIA.  The Exchange Offer shall comply with
all applicable tender offer rules and regulations under the Exchange Act and
other applicable law.  The Company and the Guarantors shall use their respective
best efforts to (x) cause the Exchange Offer Registration Statement to be
declared effective under the Securities Act on or before the Effectiveness Date;
(y) keep the Exchange Offer open for not less than 20 Business Days (or longer
if required by applicable law) after the date that notice of such Exchange Offer
is mailed to Holders; and (z) consummate such Exchange Offer on or prior to the
210th day following the Issue Date.  For purposes of this Section 2(a) only, if
after the Exchange Offer Registration Statement is initially declared effective
by the SEC, the Exchange Offer or the issuance of the Exchange Notes thereunder
is interfered with by any stop order, injunction or other order or requirement
of the SEC or any other governmental agency or court, the Exchange Offer
Registration Statement shall be deemed not to have become effective for purposes
of this Agreement during the period of such interference, until the Exchange
Offer may legally resume.

          Each Holder who participates in the Exchange Offer will be required,
as a condition to its participation in the Exchange Offer, to represent to the
Company in writing (which may be contained in the applicable letter of
transmittal) that (i) any Exchange Notes received by it will be acquired in the
ordinary course of its business, (ii) at the time of the consummation of the
Exchange Offer such Holder will have no arrangement or understanding with any
Person to participate in the distribution of the Exchange Notes in violation of
the provisions of the Securities Act, (iii) such Holder is not an affiliate of
the Company or any Guarantor within the

                                      -5-
<PAGE>

meaning of the Securities Act, (iv) if such Holder is not a broker-dealer, such
Holder is not engaged in, and does not intend to engage in, the distribution of
Exchange Notes, (v) if such Holder is a broker-dealer that will receive Exchange
Notes for its own account in exchange for Securities that were acquired as a
result of market-making or other trading activities, such Holder will deliver a
prospectus in connection with any resale of such Exchange Notes and (vi) such
Holder is not acting on behalf of any Persons who could not truthfully make the
foregoing representations.

          Upon consummation of the Exchange Offer in accordance with this
Section 2, the provisions of this Agreement shall continue to apply, mutatis
                                                                     -------
mutandis, solely with respect to Registrable Notes that are Private Exchange
--------
Notes, Exchange Notes as to which Section 2(c)(iv) is applicable and Exchange
Notes held by Participating Broker-Dealers, and the Company and the Guarantors
shall have no further obligation to register Registrable Notes (other than
Private Exchange Notes and other than in respect of any Exchange Notes as to
which clause 2(c)(iv) hereof applies) pursuant to Section 3 hereof.

          No securities other than the Exchange Notes shall be included in the
Exchange Offer Registration Statement.

          (b) The Company and the Guarantors shall include within the Prospectus
contained in the Exchange Offer Registration Statement a section entitled "Plan
of Distribution," reasonably acceptable to the Initial Purchasers, which shall
contain a summary statement of the positions taken or policies made by the staff
of the SEC with respect to the potential "underwriter" status of any broker-
dealer that is the beneficial owner (as defined in Rule 13d-3 under the Exchange
Act) of Exchange Notes received by such broker-dealer in the Exchange Offer (a
"Participating Broker-Dealer"), whether such positions or policies have been
----------------------------
publicly disseminated by the staff of the SEC or such positions or policies
represent the prevailing views of the staff of the SEC.  Such "Plan of
Distribution" section shall also expressly permit the use of the Prospectus by
all Persons subject to the  prospectus delivery requirements of the Securities
Act, including all Participating Broker-Dealers, and include a statement
describing the means by which Participating Broker-Dealers may resell the
Exchange Notes in compliance with the Securities Act.

          The Company and the Guarantors shall use their respective best efforts
to keep the Exchange Offer Registration Statement effective and to amend and
supplement the Prospectus contained therein in order to permit such prospectus
to be lawfully delivered by all Persons subject to the prospectus delivery
requirements of the Securities Act for such period of time as is necessary to
comply with applicable law in connection with any resale of the Exchange Notes
covered thereby; provided, however, that such period shall not exceed 180 days
                 --------  -------
after such Exchange Offer Registration Statement is declared effective (or such
longer period if extended pursuant to the last paragraph of Section 5 hereof)
(the "Applicable Period").
      -----------------

                                      -6-
<PAGE>

          If, prior to consummation of the Exchange Offer, an Initial Purchaser
holds any Notes acquired by them and having, or which are reasonably likely to
be determined to have, the status of an unsold allotment in an initial
distribution, the Company and the Guarantors upon the request of such Initial
Purchaser shall simultaneously with the delivery of the Exchange Notes in the
Exchange Offer, issue and deliver to such Initial Purchaser, in exchange (each,
a "Private Exchange") for such Notes held by such Initial Purchaser, a like
   ----------------
principal amount of debt securities of the Company (guaranteed by the
Guarantors) that are identical in all material respects to the Exchange Notes
(the "Private Exchange Notes") except for the placement of a restrictive legend
      ----------------------
on such Private Exchange Notes (and which are issued pursuant to the same
indenture as the Exchange Notes).  If possible, the Private Exchange Notes shall
bear the same CUSIP number as the Exchange Notes.

          In connection with each Exchange Offer, the Company and the Guarantors
shall:

          (1)  mail, or cause to be mailed, to each Holder entitled to
     participate in the Exchange Offer a copy of the Prospectus forming part of
     the Exchange Offer Registration Statement relating to such Exchange Offer,
     together with an appropriate letter of transmittal and related documents;

          (2)  use their respective best efforts to keep the Exchange Offer open
     for not less than 20 Business Days after the date that notice of the
     Exchange Offer is mailed to Holders (or longer, if required by applicable
     law);

          (3)  utilize the services of a depositary for the Exchange Offer which
     may be the Trustee or an affiliate thereof;

          (4)  permit Holders to withdraw tendered Notes at any time prior to
     the close of business, New York time, on the last Business Day on which the
     Exchange Offer remains open; and

          (5)  otherwise comply in all material respects with all applicable
     laws, rules and regulations of the United States.

          As soon as practicable after the close of the Exchange Offer and the
Private Exchange, if any, the Company and the Guarantors shall:

          (1)  accept for exchange all Registrable Notes validly tendered and
     not validly withdrawn pursuant to the Exchange Offer and the Private
     Exchange, if any;

          (2)  deliver to the Trustee for cancellation all Registrable Notes so
     accepted for exchange; and

                                      -7-
<PAGE>

          (3)  cause the Trustee to authenticate and deliver promptly to each
     Holder of Notes, Exchange Notes or Private Exchange Notes, as the case may
     be, equal in principal amount to the Securities of such Holder so accepted
     for exchange.

          The Exchange Offer and the Private Exchange shall not be subject to
any conditions, other than that (i) the Exchange Offer or Private Exchange, as
the case may be, does not violate applicable law or any applicable
interpretation of the staff of the SEC, (ii) no action or proceeding is
instituted or threatened in any court or by any governmental agency which might
materially impair the ability of the Company and the Guarantors to proceed with
the Exchange Offer or the Private Exchange and no material adverse development
has occurred in any existing action or proceeding with respect to the Company or
the Guarantors that would materially impair the ability of the Company and the
Guarantors to consummate the Exchange Offer or the Private Exchange and (iii)
all governmental approvals have been obtained, which approvals the Company and
the Guarantors deem necessary for the consummation of the Exchange Offer or the
Private Exchange.

          The Exchange Notes and the Private Exchange Notes shall be issued
under (i) the Indenture or (ii) an indenture identical in all material respects
to the Indenture, which in either event has been qualified under the TIA or is
exempt from such qualification and shall provide that the Exchange Notes shall
not be subject to the transfer restrictions set forth in the Indenture.  The
Indenture or such indenture shall provide that the Exchange Notes, the Private
Exchange Notes and the Securities shall vote and consent together on all matters
as one class and that none of the Exchange Notes, the Private Exchange Notes or
the Securities will have the right to vote or consent as a separate class on any
matter.

          (c) If, (i) because of any change in law or in currently prevailing
interpretations of the staff of the SEC, the Company and the Guarantors are not
permitted to effect the Exchange Offer, (ii) the Exchange Offer is not
consummated within 210 days after the Issue Date, (iii) any holder of Private
Exchange Notes so requests, or (iv) in the case of any Holder that participates
in the Exchange Offer, such Holder does not receive Exchange Notes on the date
of the exchange that may be sold without restriction under state and federal
securities laws (other than due solely to the status of such Holder as an
affiliate of the Company or any Guarantor within the meaning of the Securities
Act), in the case of each of clauses (i) to and including (iv) of this sentence,
then the Company and the Guarantors shall promptly deliver to the Holders and
the Trustee written notice thereof (the "Shelf Notice") and shall file a Shelf
                                         ------------
Registration pursuant to Section 3 hereof.

          3.   Shelf Registration.  If at any time a Shelf Notice is delivered
               ------------------
as contemplated by Section 2(c) hereof, then:

          (a)  Shelf Registration.  The Company and the Guarantors shall file
               ------------------
with the SEC a Registration Statement for an offering to be made on a continuous
basis pursuant to Rule 415 covering all of the Registrable Notes not exchanged
in the Exchange Offer, Private

                                      -8-
<PAGE>

Exchange Notes and Exchange Notes to which Section 2(c)(iv) is applicable (the
"Initial Shelf Registration"). The Company and the Guarantors shall use their
 --------------------------
respective best efforts to file with the SEC the Initial Shelf Registration on
or prior to the Filing Date. The Initial Shelf Registration shall be on Form S-1
or another appropriate form permitting registration of such Registrable Notes
for resale by Holders in the manner or manners designated by them (including,
without limitation, one or more underwritten offerings). Neither the Company nor
any Guarantor shall permit any debt securities or securities convertible into or
exchangeable for debt securities other than the Registrable Notes to be included
in the Initial Shelf Registration or any Subsequent Shelf Registration (as
defined below).

          The Company and the Guarantors shall use their respective best efforts
to cause each Initial Shelf Registration to be declared effective under the
Securities Act on or prior to the Effectiveness Date and to keep such Initial
Shelf Registration continuously effective under the Securities Act until the
date which is two years from the Effectiveness Date, subject to extension
pursuant to the last paragraph of Section 5 hereof (the "Effectiveness Period"),
                                                         --------------------
or such shorter period ending when (i) all  Registrable Notes covered by the
Initial Shelf Registration have been sold in the manner set forth and as
contemplated in the Initial Shelf Registration or (ii) a Subsequent Shelf
Registration covering all of the Registrable Notes covered by and not sold under
the Initial Shelf Registration or an earlier Subsequent Shelf Registration has
been declared effective under the Securities Act; provided, however, that the
                                                  --------  -------
Effectiveness Period in respect of the Initial Shelf Registration shall be
extended to the extent required to permit dealers to comply with the applicable
prospectus delivery requirements of Rule 174 under the Securities Act and as
otherwise provided herein.

          (b) Subsequent Shelf Registrations.  If the Initial Shelf Registration
              ------------------------------
or any Subsequent Shelf Registration ceases to be effective for any reason at
any time during the Effectiveness Period (other than because of the sale of all
of the securities registered thereunder), the Company and the Guarantors shall
use their respective reasonable best efforts to obtain the prompt withdrawal of
any order suspending the effectiveness thereof, and in any event shall within 45
days of such cessation of effectiveness amend the Initial Shelf Registration in
a manner to obtain the withdrawal of the order suspending the effectiveness
thereof, or file an additional "shelf" Registration Statement pursuant to Rule
415 covering all of the Registrable Notes covered by and not sold under the
Initial Shelf Registration or an earlier Subsequent Shelf Registration (each, a
"Subsequent Shelf Registration").  If a Subsequent Shelf Registration is filed,
 -----------------------------
the Company and the Guarantors shall use their respective best efforts to cause
the Subsequent Shelf Registration to be declared effective under the Securities
Act as soon as practicable after such filing and to keep such Registration
Statement continuously effective for a period equal to the number of days in the
Effectiveness Period less the aggregate number of days during which the Initial
Shelf Registration or any Subsequent Shelf Registration was previously
continuously effective.  As used herein the term "Shelf Registration" means the
                                                  ------------------
Initial Shelf Registration and any Subsequent Shelf Registration.

                                      -9-
<PAGE>

          (c)  Supplements and Amendments.  The Company and the Guarantors shall
               --------------------------
promptly supplement and amend the Shelf Registration if required by the rules,
regulations or instructions applicable to the registration form used for such
Shelf Registration, if required by the Securities Act, or if reasonably
requested by the Holders of a majority in aggregate principal amount of the
Registrable Notes covered by such Registration Statement or by any underwriter
of such Registrable Notes.

          4.   Additional Interest.  (a)  The Company, the Guarantors and the
               -------------------
Initial Purchasers agree that the Holders will suffer damages if the Company and
the Guarantors fail to fulfill their obligations under Section 2 or Section 3
hereof and that it would not be feasible to ascertain the extent of such damages
with precision.  Accordingly, the Company and the Guarantors agree to pay, as
liquidated damages, additional interest on the Notes ("Additional Interest")
                                                       -------------------
under the circumstances and to the extent set forth below (each of which shall
be given independent effect):

          (i)   if (A) neither the Exchange Offer Registration Statement nor the
     Initial Shelf Registration has been filed with the SEC within 90 days after
     the Issue Date or (B) notwithstanding that the Company and the Guarantors
     have consummated or will consummate an Exchange Offer, the Company and the
     Guarantors are required to file a Shelf Registration and such Shelf
     Registration is not filed on or prior to the Filing Date applicable
     thereto, then, commencing on the day after any such Filing Date, Additional
     Interest shall accrue on the principal amount of the Notes at a rate of
     0.50% per annum for the first 90 days immediately following each such
     Filing Date, such Additional Interest rate increasing by an additional
     0.50% per annum at the beginning of each subsequent 90-day period; and

          (ii)  if (A) neither the Exchange Offer Registration Statement nor the
     Initial Shelf Registration is declared effective by the SEC on or prior to
     the relevant Effectiveness Date or (B) notwithstanding that the Company and
     the Guarantors have consummated or will consummate the Exchange Offer, the
     Company and the Guarantors are required to file a Shelf Registration and
     such Shelf Registration is not declared effective by the SEC on or prior to
     the Effectiveness Date in respect of such Shelf Registration, then,
     commencing on the day after such Effectiveness Date, Additional Interest
     shall accrue on the principal amount of the Notes at a rate of 0.50% per
     annum for the first 90 days immediately following the day after such
     Effectiveness Date, such Additional Interest rate increasing by an
     additional 0.50% per annum at the beginning of each subsequent 90-day
     period; and

          (iii) if (A) the Company and the Guarantors have not exchanged
     Exchange Notes for all Notes validly tendered in accordance with the terms
     of the Exchange Offer on or prior to the 210th day after the Issue Date or
     (B) if applicable, a Shelf Registration has been declared effective and
     such Shelf Registration ceases to be effective at any time during the
     Effectiveness Period (other than after such time as all

                                      -10-
<PAGE>

     Notes have been disposed of thereunder), then Additional Interest shall
     accrue on the principal amount of the Notes at a rate of 0.50% per annum
     for the first 90 days commencing on the (x) 211th day after the Issue Date,
     in the case of (A) above, or (y) the day such Shelf Registration ceases to
     be effective in the case of (B) above, such Additional Interest rate
     increasing by an additional 0.50% per annum at the beginning of each such
     subsequent 90-day period;

provided, however, that Additional Interest on the Notes may not accrue under
--------  -------
more than one of the foregoing clauses (i), (ii) or (iii) at any one time and at
no time shall the aggregate amount of Additional Interest accruing exceed in the
aggregate 1.5% per annum; provided, further, however, that (1) upon the filing
                          --------  -------  -------
of the Exchange Offer Registration Statement or a Shelf Registration as required
hereunder (in the case of clause (a)(i) of this Section 4), (2) upon the
effectiveness of the Exchange Offer Registration Statement or a Shelf
Registration as required hereunder (in the case of clause (a)(ii) of this
Section 4), or (3) upon the exchange of Exchange Notes for all Notes tendered
(in the case of clause (a)(iii)(A) of this Section 4), or upon the
effectiveness of a Shelf Registration which had ceased to remain effective (in
the case of (a)(iii)(B) of this Section 4), Additional Interest on the Notes as
a result of such clause (or the relevant subclause thereof), as the case may be,
shall cease to accrue.  It is understood and agreed that, notwithstanding any
provision to the contrary, so long as any Registrable Note is then covered by an
effective Shelf Registration Statement, no Additional Interest shall accrue on
such Registrable Security.

          (b)  The Company and the Guarantors shall notify the Trustee within
two business days after each and every date on which an event occurs in respect
of which Additional Interest is required to be paid (an "Event Date"). Any
                                                          ---------
amounts of Additional Interest due pursuant to (a)(i), (a)(ii) or (a)(iii) of
this Section 4 will be payable in cash semi-annually on each February 15 and
August 15 (to the holders of record on the February 1 and August 1 immediately
preceding such dates), commencing with the first such date occurring after any
such Additional Interest commences to accrue. The amount of Additional Interest
will be determined by multiplying the applicable Additional Interest rate by the
principal amount of the Registrable Notes, multiplied by a fraction, the
numerator of which is the number of days such Additional Interest rate was
applicable during such period (determined on the basis of a 360-day year
comprised of twelve 30-day months and, in the case of a partial month, the
actual number of days elapsed), and the denominator of which is 360.

          5.   Registration Procedures.  In connection with the filing of any
               ------------------------
Registration Statement pursuant to Sections 2 or 3 hereof, the Company and the
Guarantors shall effect such registrations to permit the sale of the securities
covered thereby in accordance with the intended method or methods of disposition
thereof, and pursuant thereto and in connection with any Registration Statement
filed by the Company and the Guarantors hereunder the Company and the Guarantors
shall:

                                      -11-
<PAGE>

          (a) Prepare and file with the SEC prior to the applicable Filing Date,
a Registration Statement or Registration Statements as prescribed by Sections 2
or 3 hereof, and use their respective best efforts to cause each such
Registration Statement to become effective and remain effective as provided
herein; provided, however, that, if (1) such filing is pursuant to Section 3
        --------  -------
hereof, or (2) a Prospectus contained in the Exchange Offer Registration
Statement filed pursuant to Section 2 hereof is required to be delivered under
the Securities Act by any Participating Broker-Dealer who seeks to sell Exchange
Notes during the Applicable Period relating thereto, before filing any
Registration Statement or Prospectus or any amendments or supplements thereto,
the Company and the Guarantors shall furnish to and afford the Holders of the
Registrable Notes covered by such Registration Statement or each such
Participating Broker-Dealer, as the case may be, their counsel and the managing
underwriters, if any, a reasonable opportunity to review copies of all such
documents (including copies of any documents to be incorporated by reference
therein and all exhibits thereto) proposed to be filed (in each case at least
five business days prior to such filing, or such later date as is reasonable
under the circumstances).  Neither the Company nor any Guarantor shall file any
Registration Statement or Prospectus or any amendments or supplements thereto if
the Holders of a majority in aggregate principal amount of the Registrable Notes
covered by such Registration Statement, or any such Participating Broker-Dealer,
as the case may be, their counsel, or the managing underwriters, if any, shall
reasonably object.

          (b)  Prepare and file with the SEC such amendments and post-effective
amendments to each Shelf Registration or Exchange Offer Registration Statement,
as the case may be, as may be necessary to keep such Registration Statement
continuously effective for the Effectiveness Period or the Applicable Period, as
the case may be; cause the related Prospectus to be supplemented by any
Prospectus supplement required by applicable law, and as so supplemented to be
filed pursuant to Rule 424 (or any similar provisions then in force) promulgated
under the Securities Act; and comply with the provisions of the Securities Act
and the Exchange Act applicable to each of them with respect to the disposition
of all securities covered by such Registration Statement as so amended or
described in such Prospectus as so supplemented and with respect to the
subsequent resale of any securities being sold by a Participating Broker-Dealer
covered by any such Prospectus. The Company and the Guarantors shall be deemed
not to have used their respective best efforts to keep a Registration Statement
effective during the Effectiveness Period or the Applicable Period, as the case
may be, relating thereto if the Company or any Guarantor, as the case may be,
voluntarily takes any action that would result in selling Holders of the
Registrable Notes covered thereby or Participating Broker-Dealers seeking to
sell Exchange Notes not being able to sell such Registrable Notes or such
Exchange Notes during that period unless (i) such action is required by
applicable law or (ii) such action is taken by each of them in good faith and
for valid business reasons (not including avoidance of any of its obligations
hereunder), including the acquisition or divestiture of assets.

                                      -12-
<PAGE>

          (c) If (1) a Shelf Registration is filed pursuant to Section 3 hereof,
or (2) a Prospectus contained in the Exchange Offer Registration Statement filed
pursuant to Section 2 hereof is required to be delivered under the Securities
Act by any Participating Broker-Dealer who seeks to sell Exchange Notes during
the Applicable Period relating thereto from whom the Company has received
written notice that it will be a Participating Broker-Dealer in the Exchange
Offer, notify the selling Holders of Registrable Notes, or each such
Participating Broker-Dealer, as the case may be, their counsel and the managing
underwriters, if any, promptly (but in any event within two Business Days), and
confirm such notice in writing, (i) when a Prospectus or any Prospectus
supplement or post-effective amendment has been filed, and, with respect to a
Registration Statement or any post-effective amendment, when the same has become
effective under the Securities Act (including in such notice a written statement
that any Holder may, upon request, obtain, at the sole expense of the Company
and the Guarantors, one conformed copy of such Registration Statement or post-
effective amendment including financial statements and schedules, documents
incorporated or deemed to be incorporated by reference and exhibits), (ii) of
the issuance by the SEC of any stop order suspending the effectiveness of a
Registration Statement or of any order preventing or suspending the use of any
preliminary prospectus or the  initiation of any proceedings for that purpose,
(iii) if, at any time when a prospectus is required by the Securities Act to be
delivered in connection with sales of the Registrable Notes or resales of
Exchange Notes by Participating Broker-Dealers, the representations and
warranties of the Company and the Guarantors contained in any agreement
(including any underwriting agreement) contemplated by Section 5(m) hereof cease
to be true and correct in all material respects, (iv) of the receipt by the
Company or any Guarantor of any notification with respect to the suspension of
the qualification or exemption from qualification of a Registration Statement or
any of the Registrable Notes or the Exchange Notes to be sold by any
Participating Broker-Dealer for offer or sale in any jurisdiction, or the
initiation or threatening of any proceeding for such purpose, (v) of the
happening of any event, the existence of any condition or any information
becoming known that makes any statement made in such Registration Statement or
related Prospectus or any document incorporated or deemed to be incorporated
therein by reference untrue in any material respect or that requires the making
of any changes in or amendments or supplements to such Registration Statement,
Prospectus or documents so that, in the case of the Registration Statement, it
will not contain any untrue statement of a material fact or omit to state any
material fact required to be stated therein or necessary to make the statements
therein not misleading, and that in the case of the Prospectus, it will not
contain any untrue statement of a material fact or omit to state any material
fact required to be stated therein or necessary to make the statements therein,
in light of the circumstances under which they were made, not misleading, and
(vi) of the determination by the Company and the Guarantors that a post-
effective amendment to a Registration Statement would be appropriate.

          (d)  If (1) a Shelf Registration is filed pursuant to Section 3
hereof, or (2) a Prospectus contained in the Exchange Offer Registration
Statement filed pursuant to Section 2 hereof is required to be delivered under
the Securities Act by any Participating Broker-Dealer who seeks to sell Exchange
Notes during the Applicable Period, use their respective

                                      -13-
<PAGE>

reasonable best efforts to prevent the issuance of any order suspending the
effectiveness of a Registration Statement or of any order preventing or
suspending the use of a Prospectus or suspending the qualification (or exemption
from qualification) of any of the Registrable Notes or the Exchange Notes to be
sold by any Participating Broker-Dealer, for sale in any jurisdiction, and, if
any such order is issued, to use their respective reasonable best efforts to
obtain the withdrawal of any such order at the earliest possible moment.

          (e) If a Shelf Registration is filed pursuant to Section 3 and if
requested by the managing underwriter or underwriters (if any), the Holders of a
majority in aggregate principal amount of the Registrable Notes being sold in
connection with an underwritten offering or any Participating Broker-Dealer, (i)
promptly incorporate in a prospectus supplement or post-effective amendment such
information as the managing underwriter or underwriters (if any), such Holders,
any Participating Broker-Dealer or counsel for any of them reasonably determine
is necessary to be included therein, (ii) make all required filings of such
prospectus supplement or such post-effective amendment as soon as practicable
after the Company has received notification of the matters to be incorporated in
such prospectus supplement or post-effective amendment, and (iii) supplement or
make amendments to such Registration Statement.

          (f)  If (1) a Shelf Registration is filed pursuant to Section 3
hereof, or (2) a Prospectus contained in the Exchange Offer Registration
Statement filed pursuant to Section 2 hereof is required to be delivered under
the Securities Act by any Participating Broker-Dealer who seeks to sell Exchange
Notes during the Applicable Period, furnish to each selling Holder of
Registrable Notes and to each such Participating Broker-Dealer who so requests
and to counsel and each managing underwriter, if any, at the sole expense of the
Company and the Guarantors, one conformed copy of the Registration Statement or
Registration Statements and each post-effective amendment thereto, including
financial statements and schedules, and, if requested, all documents
incorporated or deemed to be incorporated therein by reference and all exhibits.

          (g)  If (1) a Shelf Registration is filed pursuant to Section 3
hereof, or (2) a Prospectus contained in the Exchange Offer Registration
Statement filed pursuant to Section 2 hereof is required to be delivered under
the Securities Act by any Participating Broker-Dealer who seeks to sell Exchange
Notes during the Applicable Period, deliver to each selling Holder of
Registrable Notes, or each such Participating Broker-Dealer, as the case may be,
their respective counsel, and the underwriters, if any, at the sole expense of
the Company, as many copies of the Prospectus or Prospectuses (including each
form of preliminary prospectus) and each amendment or supplement thereto and any
documents incorporated by reference therein as such Persons may reasonably
request; and, subject to the last paragraph of this Section 5, the Company and
the Guarantors hereby consent to the use of such Prospectus and each amendment
or supplement thereto by each of the selling Holders of Registrable Notes or
each such Participating Broker-Dealer, as the case may be, and the underwriters
or agents, if any, and dealers (if any), in connection with the offering and
sale of the Registrable

                                      -14-
<PAGE>

Notes covered by, or the sale by Participating Broker-Dealers of the Exchange
Notes pursuant to, such Prospectus and any amendment or supplement thereto.

          (h)   Prior to any public offering of Registrable Notes or any
delivery of a Prospectus contained in the Exchange Offer Registration Statement
by any Participating Broker-Dealer who seeks to sell Exchange Notes during the
Applicable Period, to use their respective reasonable best efforts to register
or qualify, and to cooperate with the selling Holders of Registrable Notes or
each such Participating Broker-Dealer, as the case may be, the managing
underwriter or underwriters, if any, and their respective counsel in connection
with the registration or qualification (or exemption from such registration or
qualification) of such Registrable Notes for offer and sale under the securities
or Blue Sky laws of such jurisdictions within the United States as any selling
Holder, Participating Broker-Dealer, or the managing underwriter or underwriters
reasonably request; provided, however, that where Exchange Notes held by
                    --------  -------
Participating Broker-Dealers or Registrable Notes are offered other than through
an underwritten offering, the Company and the Guarantors agree to cause their
counsel to perform Blue Sky investigations and file registrations and
qualifications required to be filed pursuant to this Section 5(h), keep each
such registration or qualification (or exemption therefrom) effective during the
period such Registration Statement is required to be kept effective and do any
and all other acts or things reasonably necessary or advisable to enable the
disposition in such jurisdictions of the Exchange Notes held by Participating
Broker-Dealers or the Registrable Notes covered by the applicable Registration
Statement; provided, further, that neither the Company nor any Guarantor shall
           --------  -------
be required to (A) qualify generally to do business in any jurisdiction where it
is not then so qualified, (B) take any action that would subject it to general
service of process in any such jurisdiction where it is not then so subject or
(C) subject itself to taxation in excess of a nominal dollar amount in any such
jurisdiction where it is not then so subject.

          (i)  If a Shelf Registration is filed pursuant to Section 3 hereof,
reasonably cooperate with the selling Holders of Registrable Notes and the
managing underwriter or underwriters, if any, to facilitate the timely
preparation and delivery of certificates representing Registrable Notes to be
sold, which certificates shall not bear any restrictive legends and shall be in
a form eligible for deposit with The Depository Trust Company; and enable such
Registrable Notes to be in such denominations and registered in such names as
the managing underwriter or underwriters, if any, or Holders may request.

          (j) Use their respective reasonable best efforts to cause the
Registrable Notes covered by the Registration Statement to be registered with or
approved by such other governmental agencies or authorities as may be reasonably
necessary to enable the seller or sellers thereof or the underwriter or
underwriters, if any, to consummate the disposition of such Registrable Notes,
except as may be required solely as a consequence of the nature of such selling
Holder's business, in which case the Company and the Guarantors will cooperate
in all reasonable respects with the filing of such Registration Statement and
the granting of such approvals.

                                      -15-
<PAGE>

          (k)  If(1) a Shelf Registration is filed pursuant to Section 3 hereof,
or (2) a Prospectus contained in the Exchange Offer Registration Statement filed
pursuant to Section 2 hereof is required to be delivered under the Securities
Act by any Participating Broker-Dealer who seeks to sell Exchange Notes during
the Applicable Period, upon the occurrence of any event contemplated by
paragraph 5(c)(v) or 5(c)(vi) hereof, as promptly as practicable prepare and
(subject to Section 5(a) hereof) file with the SEC, at the sole expense of the
Company, a supplement or post-effective amendment to the Registration Statement
or a supplement to the related Prospectus or any document incorporated or deemed
to be incorporated therein by reference, or file any other required document so
that, as thereafter delivered to the purchasers of the Registrable Notes being
sold thereunder or to the purchasers of the Exchange Notes to whom such
Prospectus will be delivered by a Participating Broker-Dealer, any such
Prospectus will not contain an untrue statement of a material fact or omit to
state a material fact required to be stated therein or necessary to make the
statements therein, in light of the circumstances under which they were made,
not misleading.

          (l)  Prior to the effective date of the first Registration Statement
relating to the Registrable Notes, (i) provide the Trustee with certificates for
the Registrable Notes in a form eligible for deposit with The Depository Trust
Company and (ii) provide a CUSIP number and an ISIN number for the Registrable
Notes.

          (m)  In connection with any underwritten offering of Registrable Notes
pursuant to a Shelf Registration, enter into an underwriting agreement as is
customary in underwritten offerings of debt securities similar to the Securities
and take all such other actions as are reasonably requested by the managing
underwriter or underwriters in order to expedite or facilitate the registration
or the disposition of such Registrable Notes and, in such connection, (i) make
such representations and warranties to, and covenants with, the underwriters
with respect to the business of the Company, the Guarantors and their respective
subsidiaries (including any acquired business, properties or entity, if
applicable) and the Registration Statement, Prospectus and documents, if any,
incorporated or deemed to be incorporated by reference therein, in each case, as
are customarily made by issuers to underwriters in underwritten offerings of
debt securities similar to the Securities, and confirm the same in writing if
and when requested; (ii) obtain the written opinions of counsel to the Company
and the Guarantors and written updates thereof in form, scope and substance
reasonably satisfactory to the managing underwriter or underwriters, addressed
to the underwriters covering the matters customarily covered in opinions
requested in underwritten offerings and such other matters as may be reasonably
requested by the managing underwriter or underwriters; (iii) obtain "cold
comfort" letters and updates thereof in form, scope and substance reasonably
satisfactory to the managing underwriter or underwriters from the independent
certified public accountants of the Company and the Guarantors (and, if
necessary, any other independent certified public accountants of any subsidiary
of the Company or any Guarantor or of any business acquired by the Company or
any Guarantor for which financial statements and financial data are, or are
required to be, included or

                                      -16-
<PAGE>

incorporated by reference in the Registration Statement), addressed to each of
the underwriters, such letters to be in customary form and covering matters of
the type customarily covered in "cold comfort" letters in connection with
underwritten offerings and such other matters as reasonably requested by the
managing underwriter or underwriters as permitted by the Statement on Auditing
Standards No. 72; and (iv) if an underwriting agreement is entered into, the
same shall contain indemnification provisions and procedures no less favorable
than those set forth in Section 7 hereof (or such other provisions and
procedures acceptable to Holders of a majority in aggregate principal amount of
Registrable Notes covered by such Registration Statement and the managing
underwriter or underwriters or agents) with respect to all parties to be
indemnified pursuant to said Section. The above shall be done as and to the
extent required by such underwriting agreement.

          (n) If (1) a Shelf Registration is filed pursuant to Section 3 hereof,
or (2) a Prospectus contained in the Exchange Offer Registration Statement filed
pursuant to Section 2 hereof is required to be delivered under the Securities
Act by any Participating Broker-Dealer who seeks to sell Exchange Notes during
the Applicable Period, make available for inspection by any selling Holder of
such Registrable Notes being sold, or each such Participating Broker-Dealer, as
the case may be, any underwriter participating in any such disposition of
Registrable Notes, if any, and any attorney, accountant or other agent retained
by any such selling Holder or each such Participating Broker-Dealer, as the case
may be, or underwriter (collectively, the "Inspectors"), at the offices where
                                           ----------
normally kept, during reasonable business hours, all financial and other
records, pertinent corporate documents and instruments of the Company, the
Guarantors and their respective subsidiaries (collectively, the "Records") as
                                                                 -------
shall be reasonably necessary to enable them to exercise any applicable due
diligence responsibilities, and cause the officers, directors and employees of
the Company, the Guarantors and their respective subsidiaries to supply all
information reasonably requested by any such Inspector in connection with such
Registration Statement or Prospectus.  Records which the Company determines, in
good faith, to be confidential and any Records which the Company notifies the
Inspectors in writing are confidential shall not be disclosed by the Inspectors
unless (i) the disclosure of such Records is necessary or advisable to avoid or
correct a misstatement or omission in such Registration Statement, (ii) the
release of such Records is ordered pursuant to a subpoena or other order from a
court of competent jurisdiction, (iii) disclosure of such information is
necessary or advisable in connection with any action, claim, suit or proceeding,
directly or indirectly, involving or potentially involving such Inspector and
arising out of, based upon, relating to, or involving this Agreement or the
Purchase Agreement, or any transactions contemplated hereby or thereby or
arising hereunder or thereunder; provided, however, that prior notice shall be
                                 --------  -------
provided as soon as practicable to the Company of the potential disclosure of
any information by such Inspector pursuant to clauses (ii) or (iii) of this
sentence to permit the Company and the Guarantors to obtain a protective order
(or waive the provisions of this paragraph (n)) and that such Inspector shall
take such actions as are reasonably necessary to protect the confidentiality of
such information (if practicable) to the extent such action is otherwise not
inconsistent with, an impairment of or in derogation of the rights and interests
of the Holder or any Inspector, or (iv) the

                                      -17-
<PAGE>

information in such Records has been made generally available to the public
other than as a result of a breach of this Agreement.

          (o)  Provide an indenture trustee for the Registrable Notes or the
Exchange Notes, as the case may be, and cause the Indenture or the trust
indenture provided for in Section 2(a) hereof, as the case may be, to be
qualified under the TIA not later than the effective date of the first
Registration Statement relating to the Registrable Notes; and in connection
therewith, reasonably cooperate with the trustee under any such indenture and
the Holders of the Registrable Notes, to effect such changes to such indenture
as may be required for such indenture to be so qualified in accordance with the
terms of the TIA; and execute, and use their respective reasonable best efforts
to cause such trustee to execute, all documents as may be required to effect
such changes, and all other forms and documents required to be filed with the
SEC to enable such indenture to be so qualified in a timely manner.

          (p)  Comply in all material respects with all applicable rules and
regulations of the SEC and make generally available to their respective
securityholders earnings statements satisfying the provisions of Section 11(a)
of the Securities Act and Rule 158 thereunder (or any similar rule promulgated
under the  Securities Act) no later than 45 days after the end of any 12-month
period (or 90 days after the end of any 12-month period if such period is a
fiscal year) (i) commencing at the end of any fiscal quarter in which
Registrable Notes are sold to underwriters in a firm commitment or best efforts
underwritten offering and (ii) if not sold to underwriters in such an offering,
commencing on the first day of the first fiscal quarter of the Company after the
effective date of a Registration Statement, which statements shall cover said
12-month periods.

          (q)  Upon consummation of the Exchange Offer or a Private Exchange,
obtain an opinion of counsel to the Company and the Guarantors, in a form
customary for underwritten transactions, addressed to the Trustee for the
benefit of all Holders of Registrable Notes participating in the Exchange Offer
or the Private Exchange, as the case may be, that the Exchange Notes or Private
Exchange Notes, as the case may be, and the related indenture constitute legal,
valid and binding obligations of the Company (and the Guarantors, in the case of
the guarantees thereof) enforceable against the Company (and the Guarantors, in
the case of the guarantees thereof) in accordance with their terms, subject to
customary exceptions and qualifications.

          (r)  If the Exchange Offer or a Private Exchange is to be consummated,
upon delivery of the Registrable Notes by Holders to the Company (or to such
other Person as directed by the Company) in exchange for the Exchange Notes or
the Private Exchange Notes, as the case may be, the Company shall mark, or cause
to be marked, on such Registrable Notes that such Registrable Notes are being
cancelled in exchange for the Exchange Notes or the Private Exchange Notes, as
the case may be; in no event shall such Registrable Notes be marked as paid or
otherwise satisfied.

                                      -18-
<PAGE>

          (s)  Reasonably cooperate with each seller of Registrable Notes
covered by any Registration Statement and each underwriter, if any,
participating in the disposition of such Registrable Notes and their respective
counsel in connection with any filings required to be made with the National
Association of Securities Dealers, Inc. (the "NASD").
                                              ----

          (t)  Use their respective reasonable best efforts to take all other
steps necessary or advisable to effect the registration of the Exchange Notes
and/or Registrable Notes covered by a Registration Statement contemplated
hereby.

          The Company and the Guarantors may require each seller of Registrable
Notes as to which any registration is being effected to furnish to the Company
such information regarding such seller and the distribution of such Registrable
Notes as the Company may, from time to time, reasonably request.  The Company
may exclude from such registration the Registrable Notes of any seller if such
seller fails to furnish such information within 20 Business Days after receiving
such request.  Each seller as to which any registration is being effected agrees
to furnish promptly to the Company all information required to be disclosed in
order to make the information previously furnished to the Company by such seller
not materially misleading.

          If any such Registration Statement refers to any Holder by name or
otherwise as the holder of any securities of the Company or any Guarantor, then
such Holder shall have the right to require (i) the insertion therein of
language, in form and substance reasonably satisfactory to such Holder, to the
effect that the holding by such Holder of such securities is not to be construed
as a recommendation by such Holder of the investment quality of the securities
covered thereby and that such holding does not imply that such Holder will
assist in meeting any future financial requirements of the Company or such
Guarantor, or (ii) in the event that such reference to such Holder by name or
otherwise is not required by the Securities Act or any similar federal statute
then in force, the deletion of the reference to such Holder in any amendment or
supplement to the Registration Statement filed or prepared subsequent to the
time that such reference ceases to be required.

          Each Holder of Registrable Notes and each Participating Broker-Dealer
agrees by acquisition of such Registrable Notes or Exchange Notes to be sold by
such Participating Broker-Dealer, as the case may be, that, upon actual receipt
of any notice from the Company of the happening of any event of the kind
described in Section 5(c)(ii), 5(c)(iv), 5(c)(v), or 5(c)(vi) hereof, such
Holder will forthwith discontinue disposition of such Registrable Notes covered
by such Registration Statement or Prospectus or Exchange Notes to be sold by
such Holder or Participating Broker-Dealer, as the case may be, until such
Holder's or Participating Broker-Dealer's receipt of the copies of the
supplemented or amended Prospectus contemplated by Section 5(k) hereof, or until
it is advised in writing (the "Advice") by the Company that the use of the
                               ------
applicable Prospectus may be resumed, and has received copies of any amendments
or supplements thereto.  In the event that the Company shall give any such
notice, the Applicable Period shall be extended by the number of days during
such periods from and

                                      -19-
<PAGE>

including the date of the giving of such notice to and including the date when
each seller of Registrable Notes covered by such Registration Statement or
Exchange Notes to be sold by such Participating Broker-Dealer, as the case may
be, shall have received (x) the copies of the supplemented or amended Prospectus
contemplated by Section 5(k) hereof or (y) the Advice.

          6.   Registration Expenses.  All fees and expenses incident to the
               ---------------------
performance of or compliance with this Agreement by the Company and the
Guarantors shall be borne by the Company and the Guarantors, whether or not any
Exchange Offer or any Shelf Registration is filed or becomes effective or the
Exchange Offer is consummated, including, without limitation, (i) all
registration and filing fees (including, without limitation, (A) fees with
respect to filings required to be made with the NASD in connection with an
underwritten offering and (B) fees and expenses of compliance with state
securities or Blue Sky laws (including, without limitation, reasonable fees and
disbursements of counsel in connection with Blue Sky qualifications of the
Registrable Notes or Exchange Notes and determination of the eligibility of the
Registrable Notes or Exchange Notes for investment under the laws of such
jurisdictions (x) where the holders of Registrable Notes are located, in the
case of the Exchange Notes, or (y) as provided in Section 5(h) hereof, in the
case of Registrable Notes or Exchange Notes to be sold by a Participating
Broker-Dealer during the Applicable Period)), (ii) printing expenses, including,
without limitation, expenses of printing certificates for Registrable Notes or
Exchange Notes in a form eligible for deposit with The Depository Trust Company
and of printing prospectuses if the printing of prospectuses is requested by the
managing underwriter or underwriters, if any, or by the Holders of a majority in
aggregate principal amount of the Registrable Notes included in any Registration
Statement or in respect of Registrable Notes or Exchange Notes to be sold by any
Participating Broker-Dealer during the Applicable Period, as the case may be,
(iii) messenger, telephone and delivery expenses of the Company and the
Guarantors, (iv) fees and disbursements of counsel for the Company and the
Guarantors and reasonable fees and disbursements of one special counsel for all
of the sellers of Registrable Notes (exclusive of any counsel retained pursuant
to Section 7 hereof), (v) fees and disbursements of all independent certified
public accountants referred to in Section 5(m)(iii) hereof (including, without
limitation, the expenses of any special audit and "cold comfort" letters
required by or incident to such performance), (vi) Securities Act liability
insurance, if the Company and the Guarantors desire such insurance, (vii) fees
and expenses of all other Persons retained by the Company and the Guarantors,
(viii) internal expenses of the Company and the Guarantors (including, without
limitation, all salaries and expenses of officers and employees of the Company
and the Guarantors performing legal or accounting duties), (ix) the expense of
any annual audit, (x) the fees and expenses incurred by the Company and the
Guarantors in connection with the listing of the securities to be registered on
any securities exchange, and the obtaining of a rating of these securities, in
each case, if applicable, and (xi) the expenses relating to printing, word
processing and distributing all Registration Statements, underwriting
agreements, indentures and any other documents necessary in order to comply with
this Agreement.

                                      -20-
<PAGE>

          7.   Indemnification.  The Company and each Guarantor, jointly and
               ---------------
severally, agree to indemnify and hold harmless each Initial Purchaser, its
officers and directors, each person, if any, who controls any Initial Purchaser
and each affiliate of any Initial Purchaser which assists such Initial Purchaser
in the distribution of the Securities, within the meaning of either Section 15
of the Securities Act or Section 20 of the Exchange Act, from and against any
and all losses, claims, damages and liabilities (including, without limitation,
the legal fees and other expenses incurred in connection with any suit, action
or proceeding or any claim asserted) caused by any untrue statement or alleged
untrue statement of a material fact contained in the Offering Memorandum (as
amended or supplemented if the Issuers shall have furnished any amendments or
supplements thereto), or caused by any omission or alleged omission to state
therein a material fact required to be stated therein or necessary to make the
statements therein not misleading, except insofar as such losses, claims,
damages or liabilities are caused by any untrue statement or omission or alleged
untrue statement or omission made in reliance upon and in conformity with any
Initial Purchasers' Information.

          Each Initial Purchaser agrees to indemnify and hold harmless each of
the Issuers, its directors, its officers and each person who controls such
Issuer within the meaning of either Section 15 of the Securities Act or Section
20 of the Exchange Act to the same extent as the foregoing indemnity from the
Issuers to such Initial Purchaser, but only with reference to such losses,
claims, damages or liabilities which are caused by any untrue statement or
omission or alleged untrue statement or omission made in reliance upon and in
conformity with any Initial Purchasers' Information.

          If any suit, action, proceeding (including any governmental or
regulatory investigation), claim or demand shall be brought or asserted against
any person in respect of which indemnity may be sought pursuant to either of the
two preceding paragraphs, such person (the "Indemnified Person") shall promptly
                                            ------------------
notify the person or persons against whom such indemnity may be sought (each an
"Indemnifying Person") in writing, and such Indemnifying Person, upon request of
 -------------------
the Indemnified Person, shall retain counsel reasonably satisfactory to the
Indemnified Person to represent the Indemnified Person and any others entitled
to indemnification pursuant to this Section 7 that the Indemnifying Person may
designate in such proceeding and shall pay the fees and expenses of such counsel
related to such proceeding. In any such proceeding, any Indemnified Person shall
have the right to retain its own counsel, but the fees and expenses of such
counsel shall be at the expense of such Indemnified Person unless (i) such
Indemnifying Person and the Indemnified Person shall have mutually agreed to the
contrary, (ii) such Indemnifying Person has failed within a reasonable time to
retain counsel reasonably satisfactory to such Indemnified Person or (iii) the
named parties in any such proceeding (including any impleaded parties) include
an Indemnifying Person and an Indemnified Person and representation of both
parties by the same counsel would be inappropriate due to actual or potential
differing interests between them. It is understood that an Indemnifying Person
shall not, in connection with any proceeding or related proceedings in the same
jurisdiction, be liable for the fees and expenses of more than one separate firm
(in addition to any local counsel) for all Indemnified Persons, and that all
such fees and expenses shall be reimbursed as they are in-

                                      -21-
<PAGE>

curred. Any such separate firm for any Initial Purchaser, each affiliate of any
Initial Purchaser which assists such Initial Purchaser in the distribution of
the Securities and such control persons of any Initial Purchaser shall be
designated in writing by Chase Securities Inc., and any such separate firm for
the Issuers, their respective directors, their respective officers and such
control persons of any of the Issuers shall be designated in writing by the
Company. The Indemnifying Person shall not be liable for any settlement of any
proceeding effected without its written consent, but if settled with such
consent or if there be a final judgment for the plaintiff, such Indemnifying
Person agrees to indemnify each Indemnified Person from and against any loss or
liability by reason of such settlement or judgment. No Indemnifying Person
shall, without the prior written consent of the Indemnified Person, effect any
settlement of any pending or threatened proceeding in respect of which any
Indemnified Person is or could have been a party and indemnity could have been
sought hereunder by such Indemnified Person, unless such settlement includes an
unconditional release of such Indemnified Person from all liability on claims
that are the subject matter of such proceeding.

          If the indemnification provided for in the first and second paragraphs
of this Section 7 is unavailable to an Indemnified Person or insufficient in
respect of any losses, claims, damages or liabilities referred to therein, then
each Indemnifying Person under such paragraph, in lieu of indemnifying such
Indemnified Person thereunder, shall contribute to the amount paid or payable by
such Indemnified Person as a result of such losses, claims, damages or
liabilities (i) in such proportion as is appropriate to reflect the relative
benefits received by the Issuers on the one hand and the Initial Purchasers on
the other hand from the offering of the Securities or (ii) if the allocation
provided by clause (i) above is not permitted by applicable law, in such
proportion as is appropriate to reflect not only the relative benefits referred
to in clause (i) above but also the relative fault of the Issuers on the one
hand and the Initial Purchasers on the other in connection with the statements
or omissions that resulted in such losses, claims, damages or liabilities, as
well as any other relevant equitable considerations. The relative benefits
received by the Issuers on the one hand and the Initial Purchasers on the other
shall be deemed to be in the same respective proportions as the net proceeds
from the offering and sale of the Securities (before deducting expenses)
received by the Issuers and the total underwriting commissions received by the
Initial Purchasers, in each case as set forth in the table on the cover of the
Offering Memorandum. The relative fault of the Issuers on the one hand and the
Initial Purchasers on the other shall be determined by reference to, among other
things, whether the untrue or alleged untrue statement of a material fact or the
omission or alleged omission to state a material fact relates to information
supplied by the Issuers, on the one hand, or by the Initial Purchasers on the
other hand and the parties' relative intent, knowledge, access to information
and opportunity to correct or prevent such statement or omission.

          Each of the Issuers and the Initial Purchasers agrees that it would
not be just and equitable if contribution pursuant to this Section 7 were
determined by pro rata allocation or by any other method of allocation that does
              --------
not take account of the equitable considerations referred to in the immediately
preceding paragraph. The amount paid or payable by an Indemnified Person as a
result of the losses, claims, damages and liabilities referred to in the immedi-

                                      -22-
<PAGE>

ately preceding paragraph shall be deemed to include, subject to the
limitations set forth above, any legal or other expenses incurred by such
Indemnified Person in connection with investigating or defending any such action
or claim. Notwithstanding the provisions of this Section 7, in no event shall an
Initial Purchaser be required to contribute any amount in excess of the amount
by which the total price at which the Securities underwritten by it and
distributed to the public were offered to the public exceeds the amount of any
damages that such Initial Purchaser has otherwise been required to pay by reason
of such untrue or alleged untrue statement or omission or alleged omission. No
person guilty of fraudulent misrepresentation (within the meaning of Section
11(f) of the Securities Act) shall be entitled to contribution from any person
who was not guilty of such fraudulent misrepresentation.

          The remedies provided for in this Section 7 are not exclusive and
shall not limit any rights or remedies that may otherwise be available to any
indemnified party at law or in equity.

          The indemnity and contribution agreements contained in this Section 7
and the representations and warranties of the Company set forth in this
Agreement shall remain operative and in full force and effect regardless of (i)
any termination of this Agreement, (ii) any investigation made by or on behalf
of any Initial Purchaser or any person controlling any Initial Purchaser or by
or on behalf of the Issuers, their respective officers or directors or any other
person controlling any of the Issuers and (iii) acceptance of and payment for
any of the Securities.

          8.   Rules 144 and 144A.  The Company covenants that it will use its
               ------------------
reasonable best efforts to file the reports required to be filed by it under the
Securities Act and the Exchange Act and the rules and regulations adopted by the
SEC thereunder in a timely manner in accordance with the requirements of the
Securities Act and the Exchange Act and, for so long as any Registrable Notes
remain outstanding, if at any time the Company is not required to file such
reports, it will, upon the request of any Holder or beneficial owner of
Registrable Notes, make available such information necessary to permit sales
pursuant to Rule 144A under the Securities Act. The Company further covenants
that, for so long as any Registrable Notes remain outstanding, it will use its
reasonable best efforts to take such further action as any Holder of Registrable
Notes may reasonably request, all to the extent required from time to time to
enable such holder to sell Registrable Notes without registration under the
Securities Act within the limitation of the exemptions provided by (a) Rule
144(k) and Rule 144A under the Securities Act, as such Rules may be amended from
time to time, or (b) any similar rule or regulation hereafter adopted by the
SEC. Notwithstanding the foregoing, nothing in this Section 8 shall be deemed to
require the Company to register any of its securities pursuant to the Exchange
Act.

          9.   Underwritten Registrations.  If any of the Registrable Notes
               --------------------------
covered by any Shelf Registration are to be sold in an underwritten offering,
the investment banker or investment bankers and manager or managers that will
manage the offering will be selected by

                                      -23-
<PAGE>

the Holders of a majority in aggregate principal amount of such Registrable
Notes included in such offering and reasonably acceptable to the Company.

          No Holder of Registrable Notes may participate in any underwritten
registration hereunder unless such Holder (a) agrees to sell such Holder's
Registrable Notes on the basis provided in any underwriting arrangements
approved by the Persons entitled hereunder to approve such arrangements and (b)
completes and executes all questionnaires, powers of attorney, indemnities,
underwriting agreements and other documents required under the terms of such
underwriting arrangements.

          10.  Miscellaneous.  (a)  No Inconsistent Agreements.  Neither the
               -------------        --------------------------
Company nor any Guarantor has, as of the date hereof, and neither the Company
nor any Guarantor shall, after the date of this Agreement, enter into any
agreement with respect to any of its securities that is inconsistent with the
rights granted to the Holders of Registrable Notes in this Agreement or
otherwise conflicts with the provisions hereof. The rights granted to the
Holders hereunder do not in any way conflict with and are not inconsistent with
the rights granted to the holders of the Company's or any Guarantor's other
issued and outstanding securities under any such agreements. Neither the Company
nor any Guarantor will enter into any agreement with respect to any of its
securities which will grant to any Person piggy-back registration rights with
respect to any Registration Statement.

          (b)  Adjustments Affecting Registrable Notes.  Neither the Company nor
               ---------------------------------------
any Guarantor shall, directly or indirectly, take any action with respect to the
Registrable Notes as a class that would adversely affect the ability of the
Holders of Registrable Notes to include such Registrable Notes in a registration
undertaken pursuant to this Agreement.

          (c)  Amendments and Waivers.  The provisions of this Agreement may not
               ----------------------
be amended, modified or supplemented, and waivers or consents to departures from
the provisions hereof may not be given, otherwise than with the prior written
consent of (I) the Company and the Guarantors and (II)(A) the Holders of not
less than a majority in aggregate principal amount of the then outstanding
Registrable Notes and (B) in circumstances that would adversely affect the
Participating Broker-Dealers, the Participating Broker-Dealers holding not less
than a majority in aggregate principal amount of the Exchange Notes held by all
Participating Broker-Dealers; provided, however, that Section 7 and this Section
                              --------  -------
10(c) may not be amended, modified or supplemented without the prior written
consent of each Holder and each Participating Broker-Dealer (including any
person who was a Holder or Participating Broker-Dealer of Registrable Notes or
Exchange Notes, as the case may be, disposed of pursuant to any Registration
Statement) affected by any such amendment, modification or supplement.
Notwithstanding the foregoing, a waiver or consent to depart from the provisions
hereof with respect to a matter that relates exclusively to the rights of
Holders of Registrable Notes whose securities are being sold pursuant to a
Registration Statement and that does not directly or indirectly affect, impair,
limit or compromise the rights of other Holders of Registrable Notes

                                      -24-
<PAGE>

may be given by Holders of at least a majority in aggregate principal amount of
the Registrable Notes being sold by such Holders pursuant to such Registration
Statement.

          (d)  Notices.  All notices and other communications (including without
               -------
limitation any notices or other communications to the Trustee) provided for or
permitted hereunder shall be made in writing by hand-delivery, registered first-
class mail, next-day air courier or facsimile:

          (i)  if to a Holder of Registrable Notes or any Participating Broker-
Dealer, at the most current address of such Holder or Participating Broker-
Dealer, as the case may be, set forth on the records of the registrar under the
Indenture.

          (ii) if to the Company or any Guarantor at the address as follows:

               Constellation Brands, Inc.
               300 WillowBrook Office Park
               Fairport, New York  14450
               Attention: General Counsel
               Facsimile: (716) 218-2165

               with a copy to:
               McDermott, Will & Emery
               227 West Monroe Street
               Chicago, Illinois 60606-5096
               Facsimile: (312) 984-7700

                                      -25-
<PAGE>

          (iii) if to the Initial Purchasers at the address as follows:

                Chase Securities Inc.
                270 Park Avenue
                New York, New York  10017
                Attention: Stephen B. Grant
                Facsimile: (212) 270-7487

                with a copy to:
                Cahill Gordon & Reindel
                80 Pine Street
                New York, New York  10005
                Attention: Daniel J. Zubkoff
                Facsimile: (212) 269-5420

          All such notices and communications shall be deemed to have been duly
given: when delivered by hand, if personally delivered; five Business Days after
being deposited in the mail, postage prepaid, if mailed; one Business Day after
being timely delivered to a next-day air courier; and when receipt is
acknowledged by the addressee, if sent by facsimile.

          Copies of all such notices, demands or other communications shall be
concurrently delivered by the Person giving the same to the Trustee at the
address and in the manner specified in such Indenture.

          (e)  Successors and Assigns. This Agreement shall inure to the benefit
               ----------------------
of and be binding upon the successors and assigns of each of the parties hereto,
the Holders and the Participating Broker-Dealers; provided, however, that this
                                                  --------  -------
Agreement shall not inure to the benefit of or be binding upon a successor or
assign of a Holder unless and to the extent such successor or assign holds
Registrable Notes.

          (f)  Counterparts.  This Agreement may be executed in any number of
               ------------
counterparts and by the parties hereto in separate counterparts, each of which
when so executed shall be deemed to be an original and all of which taken
together shall constitute one and the same agreement.

          (g)  Headings.  The headings in this Agreement are for convenience of
               --------
reference only and shall not limit or otherwise affect the meaning hereof.

          (h)  Governing Law; Jurisdiction.  THIS AGREEMENT SHALL BE GOVERNED BY
               ---------------------------
AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK, AS APPLIED
TO CONTRACTS MADE AND PERFORMED WHOLLY WITHIN THE STATE OF NEW YORK, WITHOUT
REGARD TO PRINCIPLES OF CONFLICTS OF LAW.  EACH OF THE PARTIES HERETO AGREES TO
SUBMIT TO THE JURISDICTION OF THE COURTS OF THE STATE

                                      -26-
<PAGE>

OF NEW YORK IN ANY ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS
AGREEMENT.

          (i)  Severability.  If any term, provision, covenant or restriction of
               ------------
this Agreement is held by a court of competent jurisdiction to be invalid,
illegal, void or unenforceable, the remainder of the terms, provisions,
covenants and restrictions set forth herein shall remain in full force and
effect and shall in no way be affected, impaired or invalidated, and the parties
hereto shall use their best efforts to find and employ an alternative means to
achieve the same or substantially the same result as that contemplated by such
term, provision, covenant or restriction. It is hereby stipulated and declared
to be the intention of the parties hereto that they would have executed the
remaining terms, provisions, covenants and restrictions without including any of
such that may be hereafter declared invalid, illegal, void or unenforceable.

          (j)  Securities Held by the Company or Its Affiliates.  Whenever the
               ------------------------------------------------
consent or approval of Holders of a specified percentage of Registrable Notes is
required hereunder, Registrable Notes held by the Company, the Guarantors or any
of their affiliates (as such term is defined in Rule 405 under the Securities
Act) shall not be counted in determining whether such consent or approval was
given by the Holders of such required percentage.

          (k)  Third Party Beneficiaries.  Holders of Registrable Notes and
               -------------------------
Participating Broker-Dealers are intended third party beneficiaries of this
Agreement and this Agreement may be enforced by such Persons.

          (l)  Entire Agreement.  This Agreement, together with the Purchase
               ----------------
Agreement and the Indenture, is intended by the parties as a final and exclusive
statement of the agreement and understanding of the parties hereto in respect of
the subject matter contained herein and therein and any and all prior oral or
written agreements, representations, or warranties, contracts, understandings,
correspondence, conversations and memoranda between the Holders on the one hand
and the Company and the Guarantors on the other, or between or among any agents,
representatives, parents, subsidiaries, affiliates, predecessors in interest or
successors in interest with respect to the subject matter hereof and thereof are
merged herein and replaced hereby.

          (m)  Additional Amounts of Securities.  The Securities are limited in
               --------------------------------
aggregate principal amount to $200,000,000. Additional amounts of Securities may
be issued in one or more series from time to time under the Indenture
(collectively "Additional Notes") prior to the filing of any Registration
               ----------------
Statement. The Company and the Guarantors shall provide the registration rights
set forth under this Agreement to the Initial Purchasers and any subsequent
holder or holders of such Additional Notes and notwithstanding anything
contained herein may but are not obligated to include such Additional Notes in
any Registration Statement filed hereunder.

                                      -27-
<PAGE>

          IN WITNESS WHEREOF, the parties have executed this Agreement as of the
date first written above.

                                        CONSTELLATION BRANDS, INC.

                                        By: /s/ Thomas S. Summer
                                            --------------------
                                            Name:  Thomas S. Summer
                                            Title: Executive Vice President an
                                                   Chief Financial Officer

                                        GUARANTORS

                                        BATAVIA WINE CELLARS, INC.

                                        By: /s/ Thomas S. Summer
                                            --------------------
                                            Name:  Thomas S. Summer
                                            Title: Treasurer

                                        BARTON INCORPORATED

                                        By: /s/ Thomas S. Summer
                                            --------------------
                                            Name:  Thomas S. Summer
                                            Title: Vice President

                                        BARTON BRANDS, LTD.

                                        By: /s/ Thomas S. Summer
                                            --------------------
                                            Name:  Thomas S. Summer
                                            Title: Vice President
<PAGE>

                                             BARTON BEERS, LTD.

                                             By: /s/ Thomas S. Summer
                                                 --------------------
                                                 Name:  Thomas S. Summer
                                                 Title: Vice President

                                             BARTON BRANDS OF CALIFORNIA, INC.

                                             By: /s/ Thomas S. Summer
                                                 --------------------
                                                 Name:  Thomas S. Summer
                                                 Title: Vice President

                                             BARTON BRANDS OF GEORGIA, INC.

                                             By:  /s/ Thomas S. Summer
                                                  --------------------
                                                  Name:  Thomas S. Summer
                                                  Title: Vice President

                                             BARTON DISTILLERS IMPORT CORP.

                                             By: /s/ Thomas S. Summer
                                                 --------------------
                                                 Name:  Thomas S. Summer
                                                 Title: Vice President

                                             BARTON FINANCIAL CORPORATION

                                             By: /s/ Thomas S. Summer
                                                 --------------------
                                                 Name:  Thomas S. Summer
                                                 Title: Vice President
<PAGE>

                                       STEVENS POINT BEVERAGE CO.

                                       By:  /s/ Thomas S. Summer
                                            --------------------
                                            Name:  Thomas S. Summer
                                            Title: Vice President

                                       CANANDAIGUA LIMITED

                                       By:   /s/ Thomas S. Summer
                                             --------------------
                                             Name:  Thomas S. Summer
                                             Title: Finance Director
                                                (Principal Financial Officer
                                                and Principal Accounting
                                                Officer)

                                       MONARCH IMPORT COMPANY

                                       By:   /s/ Thomas S. Summer
                                             --------------------
                                             Name:  Thomas S. Summer
                                             Title: Vice President

                                       CANANDAIGUA WINE COMPANY, INC.

                                       By:   /s/ Thomas S. Summer
                                             --------------------
                                             Name:  Thomas S. Summer
                                             Title: Treasurer
<PAGE>

                                     CANANDAIGUA EUROPE LIMITED

                                     By:  /s/ Thomas S. Summer
                                          --------------------
                                          Name:  Thomas S. Summer
                                          Title: Treasurer

                                     ROBERTS TRADING CORP.

                                     By:  /s/ Thomas S. Summer
                                          --------------------
                                          Name:  Thomas S. Summer
                                          Title: President and Treasurer

                                     POLYPHENOLICS, INC.

                                     By:  /s/ Thomas S. Summer
                                          --------------------
                                          Name:  Thomas S. Summer
                                          Title: Vice President and Treasurer

                                     FRANCISCAN VINEYARDS, INC.

                                     By:  /s/ Thomas S. Summer
                                          --------------------
                                          Name:  Thomas S. Summer
                                          Title: Vice President and Treasurer
<PAGE>

                                     ALLBERRY, INC.

                                     By:   /s/ Thomas S. Summer
                                           --------------------
                                           Name:  Thomas S. Summer
                                           Title: Vice President and Treasurer

                                     CLOUD PEAK CORPORATION
                                     By:   /s/ Thomas S. Summer
                                           --------------------
                                           Name:  Thomas S. Summer
                                           Title: Vice President and Treasurer

                                     M.J. LEWIS CORP.

                                     By:   /s/ Thomas S. Summer
                                           --------------------
                                           Name:  Thomas S. Summer
                                           Title: Vice President and Treasurer

                                     MT. VEEDER CORPORATION

                                     By:   /s/ Thomas S. Summer
                                           --------------------
                                           Name:  Thomas S. Summer
                                           Title: Vice President and Treasurer
<PAGE>

                                        CANANDAIGUA B.V.

                                        By:  /s/ Thomas S. Summer
                                             --------------------
                                             Name:  Thomas S. Summer
                                             Title: Authorized Representative

                                        BARTON CANADA, LTD.

                                        By:  /s/ Thomas S. Summer
                                             --------------------
                                             Name:  Thomas S. Summer
                                             Title: Vice President
<PAGE>

                                        INITIAL PURCHASERS

                              CHASE SECURITIES INC.
                              SALOMON SMITH BARNEY INC.
                              CREDIT SUISSE FIRST BOSTON
                                CORPORATION
                              SCOTIA CAPITAL (USA) INC.

                              By: CHASE SECURITIES INC.

                              By:   /s/Steven Tulip
                                  -----------------
                                  Name:
                                  Title:<PAGE>

                                                                   Exhibit 10.44

                              SETTLEMENT AGREEMENT

          SETTLEMENT AGREEMENT effective as of November 13, 2000, by and among
Tritel, Inc., a Delaware corporation and wholly-owned subsidiary of TeleCorp
PCS, Inc. ("Tritel"), Airwave Communications, LLC, a Mississippi limited
liability company ("Airwave"), the entities set forth on Schedule I (the
"Airwave Investor Indemnitors"), and Digital PCS, LLC, a Mississippi limited
liability company ("Digital") (each of the foregoing a "Party" and collectively
the "Parties").

          WHEREAS, Tritel became a wholly-owned subsidiary of TeleCorp PCS,
Inc., a Delaware corporation ("TeleCorp"), pursuant to a merger (the "Merger")
that was consummated on November 13, 2000 (the "Merger Date");

          WHEREAS, Tritel, Digital, Airwave, and the Airwave Investor
Indemnitors are parties to the Securities Purchase Agreement dated as of May 20,
1998 (the "Securities Purchase Agreement");

          WHEREAS, Tritel, Digital, E.B. Martin, Jr., Jerry M. Sullivan, Jr. and
William Mounger, II are parties to a License Purchase Agreement dated as of May
20, 1999 (the "License Purchase Agreement");

          WHEREAS, the individuals and entities set forth on Schedule III are
the current members of Digital (the "Digital Members");

          WHEREAS, shares of Tritel Class A Common Stock (the "Tritel Shares"),
were held in escrow pursuant to the Securities Purchase Agreement and the
License Purchase Agreement to secure certain indemnification obligations; and

          WHEREAS, as a result of the Merger each Tritel Share has been
converted into the right to receive 0.76 shares of TeleCorp Class A Common Stock
(the "TeleCorp Shares");

          NOW, THEREFORE, in consideration of the mutual covenants and
agreements set forth in this Agreement, and for other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, the
Parties agree as follows:

                                   ARTICLE I

                        ACKNOWLEDGEMENTS OF THE PARTIES

        Section 1.01  The Parties acknowledge the following:

        (a)  The Merger resulted in a Reconciliation Date, as defined in the
Securities Purchase Agreement and the License Purchase Agreement, on the Merger
Date.
<PAGE>

        (b)  As of the Reconciliation Date, 7,270,843.24 Tritel Shares issued in
the name of the Airwave Investor Indemnitors (the "Airwave Escrowed Shares")
were held in escrow (the "Airwave Escrow") pursuant to the provisions of Section
8.9 of the Securities Purchase Agreement and the provisions of the Collateral
Agency Agreement dated January 7, 1999, inter alia, to indemnify a Section 8.5
                                        ----- ----
Indemnified Party against any Section 8.5 Losses (as such terms are defined in
the Securities Purchase Agreement) incurred on or before the Reconciliation Date
(the "Airwave Indemnity Obligation").

        (c)  As of the Reconciliation Date, 1,480,697 Tritel Shares issued in
the name of Digital (the "Digital Escrowed Shares") were held in escrow (the
"Digital Escrow") under the provisions of Section 7.6 of the License Purchase
Agreement to indemnify a Section 7.2 Indemnified Party against any Section 7.2
Losses (as such terms are defined in the License Purchase Agreement) incurred on
or before the Reconciliation Date (the "Digital Indemnity Obligation").

        (d)  As of the Reconciliation Date, the outstanding principal amount of
the Old Mercury Note (as defined in the Securities Purchase Agreement) was
$2,500,000, and accrued and unpaid interest thereon was $439,721. Said principal
amount includes an advance of $343,598 to be provided by Tritel to Digital on
the date this Agreement is executed by the Parties hereto and an advance of
$50,000 to be provided by Tritel to Airwave on the date this Agreement is
executed by the Parties. Tritel, Airwave and Digital agree that $938,982 of the
Old Mercury Note shall be repaid by Airwave and $2,000,739 of the Old Mercury
Note shall be repaid by Digital.

        (e)  Pursuant to the terms of the Merger, each Tritel Share, including
the Airwave Escrowed Shares and the Digital Escrowed Shares, was converted,
effective on the Reconciliation Date, into 0.76 TeleCorp Shares. (Generic
references in this Agreement to specific numbers of Tritel Shares, Airwave
Escrowed Shares, Distributed Airwave Escrowed Shares, Retained Airwave Escrowed
Shares, Digital Escrowed Shares, Distributed Digital Escrowed Shares, and
Retained Digital Escrowed Shares refer to such shares prior to their conversion
into TeleCorp Shares.)

                                  ARTICLE II

                    TREATMENT OF SHARES CURRENTLY IN ESCROW

        Section 2.01  Retention of Shares in Escrow.
                      -----------------------------

        (a)  1,246,211 of the Airwave Escrowed Shares (the "Retained Airwave
Escrowed Shares") shall be retained in escrow pursuant to the terms of an escrow
agreement in the form of Exhibit A hereto pursuant to which Firstar Bank, N.A.
(the "Airwave Escrow Agent") shall serve as escrow agent (the "Airwave Escrow
Agreement"), and which Tritel, the Airwave Escrow Agent and the Airwave Investor
Indemnitors shall execute simultaneously with the execution of this Agreement.

        (b)  253,789 of the Digital Escrowed Shares (the "Retained Digital
Escrowed Shares") shall be retained in escrow pursuant to the terms of an escrow
agreement in the form of

                                       2
<PAGE>

Exhibit B hereto pursuant to which Firstar Bank, N.A. (the "Digital Escrow
Agent") shall serve as escrow agent (the "Digital Escrow Agreement"), and which
Digital, Tritel, and the Digital Escrow Agent shall execute simultaneously with
the execution of this Agreement.

        Section 2.02  Notice and Procedure:  Airwave Escrow.  Capitalized terms
                      -------------------------------------
in this Section 2.02 not otherwise defined in this Agreement shall have the
meanings ascribed to them in the Securities Purchase Agreement.

        (a)  During the period commencing on the "Airwave Escrow Termination
Date" (as hereinafter defined) and ending at 5:00 pm, New York City Time, on the
date which is five (5) business days following the Airwave Escrow Termination
Date, Tritel shall give each Airwave Investor Indemnitor a Section 8.5 Notice of
any Section 8.5 Losses incurred by a Section 8.5 Indemnified Party as of the
Reconciliation Date and shall simultaneously provide the Airwave Escrow Agent
with a certificate signed by the Secretary of Tritel (i) stating that Tritel has
provided the Airwave Investor Indemnitors with notice pursuant to Section
2.02(a) of this Agreement, and (ii) setting forth the dollar amount to which
Tritel claims Tritel is entitled. Failure to provide such notices by 5:00 pm,
New York City Time, on the date which is five (5) business days following the
Airwave Escrow Termination Date, shall result in the immediate termination of
the Airwave Escrow and the distribution by the Airwave Escrow Agent of all
Retained Airwave Escrowed Shares to the Airwave Investor Indemnitors so as to
provide each Airwave Investor Indemnitor with the Allocated Retained Airwave
Escrowed Shares (as defined herein) applicable to each Airwave Investor
Indemnitor (as more fully set forth in the Airwave Escrow Agreement), free and
clear of any liens, claims or encumbrances, including the Airwave Indemnity
Obligation, other than any pledge of such shares to Ericsson under the Pledge
Agreements dated January 7, 1999 (the "Ericsson Pledge Agreements"). As used
herein, the "Airwave Escrow Termination Date" shall mean the earlier to occur of
(x) the date the Airwave Investor Indemnitors and Tritel definitively agree in
writing that all the matters related to the Airwave Indemnity Obligation have
been dismissed, settled or otherwise finally disposed of, and (y) October 15,
2001.

        (b)  If any Airwave Investor Indemnitor notifies Tritel within ten
business days following receipt of the Section 8.5 Notice of such Airwave
Investor Indemnitor's disagreement with respect to the noticed Section 8.5 Loss
and simultaneously provides the Airwave Escrow Agent with a certificate signed
by such Airwave Investor Indemnitor stating that such Airwave Investor
Indemnitor has provided Tritel with notice pursuant to Section 2.02(b) of this
Agreement, then the Allocated Retained Airwave Escrowed Shares (as defined
herein) applicable to each Airwave Investor Indemnitor providing such notice
shall remain in the Airwave Escrow and notwithstanding any provision in the
Securities Purchase Agreement and without limitation of Section 4.01 herein, the
Parties shall submit such disagreement to binding arbitration pursuant to
ARTICLE IV hereof to determine (i) if there were any Section 8.5 Losses incurred
as of the Reconciliation Date and arising out of or resulting from the matters
specified in Sections 8.5(i) and (ii) of the Securities Purchase Agreement and
if so, the amount of such Loss, (ii) the number of Retained Airwave Escrowed
Shares, if any, to be transferred to the Section 8.5 Indemnified Party in order
to satisfy such incurred Section 8.5 Loss, and (iii) any other matter related to
the Retained Airwave Escrowed Shares. Any Retained Airwave Escrowed Shares not
required to remain in the Airwave Escrow by this clause (b), shall be
distributed pursuant to Section 2.01(b) of the Airwave Escrow Agreement.

                                       3
<PAGE>

        (c)  The Parties agree that neither the entering into of this Agreement,
any delay in undertaking the distribution process specified in Section 8.9(b) of
the Securities Purchase Agreement, the extension of the Airwave Escrow beyond
the Reconciliation Date, the retention in the Airwave Escrow of the Retained
Airwave Escrowed Shares, nor the distribution from the Airwave Escrow of the
Distributed Airwave Shares (as provided for in Section 2.04 hereof) shall have
any bearing on the determination by the arbitrator of the matters set forth in
Section 2.02(b) hereof, and no Party hereto shall be estopped from asserting any
claim, or any defense to such claim with respect to all indemnifiable matters
pursuant to the Securities Purchase Agreement. Notwithstanding the foregoing,
the Parties agree that no claim shall be made with respect to the Distributed
Airwave Shares or the Retained Airwave Escrowed Shares distributed pursuant to
the last sentence of Section 2.02(b).

        Section 2.03  Notice and Procedure:  Digital Escrow.  Capitalized terms
                      -------------------------------------
in this Section 2.03 not otherwise defined in this Agreement shall have the
meanings ascribed to them in the License Purchase Agreement.

        (a)  A Digital Member may elect by written notice to Digital, Tritel and
the Digital Escrow Agent, to require Digital and the Digital Escrow Agent to
record beneficial ownership of such Digital Member's Allocated Retained Digital
Escrowed Shares (as set forth on Schedule IV in such Digital Member's name).
Such Digital Member shall execute and deliver to the other Parties and the
Digital Escrow Agent an executed counterpart of the Digital Escrow Agreement and
this Agreement together with a certificate stating that (i) such Digital Member
shall be bound by this Agreement and the Digital Escrow Agreement, (ii) as of
the date of such beneficial transfer of record, the representations set forth in
Section 3.01 and Section 3.02 hereof are true and correct, and (iii) such
Digital Member shall succeed to the rights and obligations of Digital hereunder
with respect to the Allocated Retained Digital Escrowed Shares of such Digital
Member. Digital and any Digital Member who pursuant to this Section 2.03(a)
elects to have beneficial ownership of Retained Digital Escrowed Shares recorded
in such Digital Member's name, are hereinafter each referred to as a "Digital
Investor Indemnitor" and collectively as the "Digital Investor Indemnitors."

        (b)  During the period commencing on the "Digital Escrow Termination
Date" (as hereinafter defined) and ending at 5:00 pm, New York City Time on the
date which is five (5) business days following the Digital Escrow Termination
Date, Tritel shall give each Digital Investor Indemnitor a Section 7.2 Notice of
any Section 7.2 Losses incurred by a Section 7.2 Indemnified Party as of the
Reconciliation Date and shall simultaneously provide the Digital Escrow Agent
with a certificate signed by the Secretary of Tritel (i) stating that Tritel has
provided the Digital Investor Indemnitors with notice pursuant to Section
2.03(b) of this Agreement, and (ii) setting forth the dollar amount to which
Tritel claims Tritel is entitled. Failure to provide such notices by 5:00 pm,
New York City Time on the date which is five (5) business days following the
Digital Escrow Termination Date, shall result in the immediate termination of
the Digital Escrow and the distribution by the Digital Escrow Agent of all
Retained Digital Escrowed Shares to the Digital Investor Indemnitors so as to
provide each Digital Investor Indemnitor with the Allocated Retained Digital
Escrowed Shares (as defined herein) applicable to each Digital Investor
Indemnitor (as more fully set forth in the Digital Escrow Agreement), free and
clear of any liens, claims or encumbrances, including the Digital Indemnity
Obligation. As used herein, the Digital Escrow Termination Date shall mean the

                                       4
<PAGE>

earlier to occur of (x) the date the Digital Investor Indemnitors and Tritel
definitively agree in writing that all the matters related to the Digital
Indemnity Obligation have been dismissed, settled, or otherwise finally disposed
of, and (y) October 15, 2001.

        (c)  If any Digital Investor Indemnitor notifies Tritel within ten
business days following receipt of the Section 7.2 Notice of such Digital
Investor Indemnitor's disagreement with respect to the noticed Section 7.2 Loss
and simultaneously provides the Digital Escrow Agent with a certificate signed
by such Digital Investor Indemnitor stating that such Digital Investor
Indemnitor has provided Tritel with notice pursuant to Section 2.03(c) of this
Agreement, then the Allocated Retained Digital Escrowed Shares (as defined
herein) applicable to each Digital Investor Indemnitor providing such notice
shall remain in the Digital Escrow and notwithstanding any provision in the
License Purchase Agreement and without limitation of Section 4.01 herein, the
Parties shall submit such disagreement to binding arbitration pursuant to
ARTICLE IV hereof to determine (i) if there were any Section 7.2 Losses incurred
as of the Reconciliation Date and arising out of or resulting from the matters
specified in Sections 7.2(i) and (ii) of the License Purchase Agreement and if
so, the amount of such Loss, (ii) the number of Retained Digital Escrowed
Shares, if any, to be transferred to the Section 7.2 Indemnified Party in order
to satisfy such incurred Section 7.2 Loss, and (iii) any other matter related to
the Retained Digital Escrowed Shares. Any Retained Digital Escrowed Shares not
required to remain in the Digital Escrow by this clause (c), shall be
distributed pursuant to Section 2.01(b) of the Digital Escrow Agreement.

        (d)  The Parties agree that neither the entering into of this Agreement,
any delay in undertaking the distribution process specified in Section 7.6(b) of
the License Purchase Agreement, the extension of the Digital Escrow beyond the
Reconciliation Date, the retention in the Digital Escrow of the Retained Digital
Escrowed Shares, nor the distribution from the Digital Escrow of the Distributed
Digital Shares (as provided for in Section 2.04 hereof) shall have any bearing
on the determination by the arbitrator of the matters set forth in Section
2.03(c) hereof, and no Party hereto shall be estopped from asserting any claim,
or any defense to such claim with respect to all indemnifiable matters pursuant
to the License Purchase Agreement. Notwithstanding the foregoing, the Parties
agree that no claim shall be made with respect to the Distributed Digital Shares
or the Retained Digital Escrowed Shares distributed pursuant to the last
sentence of Section 2.03(c).

        Section 2.04  Distribution of Shares.
                      ----------------------

        (a)  Capitalized terms in this Section 2.04(a) not otherwise defined in
this Agreement shall have the meanings ascribed to them in the Securities
Purchase Agreement. Tritel, Airwave, and the Airwave Investor Indemnitors hereby
agree to instruct Trustmark National Bank, N.A. ("Trustmark"), in substantially
the form of the Letter of Instruction attached hereto as Exhibit C, and agree to
execute any documents reasonably requested by Trustmark in connection with such
instruction, to:

        (i)  release 6,024,632.24 of the Airwave Escrowed Shares (the
     "Distributed Airwave Shares") from the Airwave Escrow, to convert such
     shares into TeleCorp Shares as provided for in Exhibit C, and to transfer
     such shares to the Airwave Investor

                                       5
<PAGE>

     Indemnitors in accordance with their Allocated Distributed Airwave Escrowed
     Shares (as defined herein), and

        (ii) convert the Retained Airwave Escrowed Shares into TeleCorp Shares
     as provided for in Exhibit C, and to transfer such converted shares to the
     Airwave Escrow Agent to be held pursuant to the Airwave Escrow Agreement,

in each case free and clear of all liens, claims and encumbrances (including,
without limitation, any Airwave Indemnity Obligation) other than the Ericsson
Pledge Agreement, and free of any restrictive legend (other than any legend
required by Rule 145 promulgated under the Securities Act of 1933).

        (b)  Capitalized terms in this Section 2.04(b) not otherwise defined in
this Agreement shall have the meanings ascribed to them in the License Purchase
Agreement. Tritel and the Digital Investor Indemnitors hereby agree to instruct
Neeld in substantially the form of the Letter of Instruction attached hereto as
Exhibit D to:

        (i)  release 1,226,908 of the Digital Escrowed Shares (the "Distributed
     Digital Shares") from the Digital Escrow, to convert such shares into
     TeleCorp Shares as provided for in Exhibit D, and to transfer (x) 1,039,085
     of such shares to the Digital Investor Indemnitors in accordance with their
     Allocated Distributed Digital Escrowed Shares (as defined herein), and (y)
     187,823 of such shares to Tritel (with the acknowledgment that 127,830
     shares are being transferred on behalf of Digital and 59,993 shares are
     being transferred on behalf of Airwave) in full payment and satisfaction of
     both the Old Mercury Note and accrued and unpaid interest thereon as of the
     Merger Date, and

        (ii) convert the Retained Digital Escrowed Shares into TeleCorp Shares
     as provided for in Exhibit D and to transfer such converted Retained
     Digital Escrowed Shares to the Digital Escrow Agent to be held pursuant to
     the Digital Escrow Agreement,

in each case, free and clear of all liens, claims and encumbrances (including,
without limitation, any Digital Indemnity Obligation), and free of any
restrictive legend (other than any legend required by Rule 145 promulgated under
the Securities Act of 1933).  Simultaneous with the distribution of the
Distributed Airwave Shares and the Distributed Digital Shares, Tritel shall
advance $343,598 to Digital and $50,000 to Airwave, which payment shall be
deemed an advance under the Old Mercury Note.

        Section 2.05  Release.
                      -------

        (a)  Upon transfer of the Airwave Escrowed Shares in accordance with the
terms of this Agreement, Trustmark shall be released from and against any and
all claims by the Parties for any losses, damages, liabilities and expenses,
whether known or unknown, incurred by any of the Parties on or prior to such
transfer of Airwave Escrowed Shares under and pursuant to the terms of the
Securities Purchase Agreement.

        (b)  Upon transfer of the Digital Escrowed Shares in accordance with the
terms of this Agreement, Neeld shall be released from and against any and all
claims by the Parties for

                                       6
<PAGE>

any losses, damages, liabilities and expenses, whether known or unknown,
incurred by any of the Parties on or prior to such transfer of Digital Escrowed
Shares with respect to any and all actions by Neeld as Escrow Holder of the
Digital Escrowed Shares under and pursuant to the terms of the License Purchase
Agreement.

                                  ARTICLE III

                         REPRESENTATIONS AND WARRANTIES

        Section 3.01  Authority.  Each Party hereto represents and warrants
                      ---------
that:

        (a)  such Party has full corporate or other requisite power, authority,
and capacity, to execute and deliver this Agreement and the Airwave Escrow
Agreement or the Digital Escrow Agreement, as the case may be (collectively, the
"Agreements"), to perform such Party's obligations under the Agreements and to
consummate the transactions contemplated by the Agreements;

        (b)  the execution and delivery of the Agreements by such Party and the
performance of such Party's obligations under the Agreements have been duly and
validly authorized by all necessary corporate or other requisite action;

        (c)  the Agreements have been duly executed and delivered by such Party
and constitute valid and binding obligations of such Party enforceable against
such Party in accordance with their terms.

        Section 3.02  No Conflict.  Each Party hereto represents and warrants
                      -----------
that neither the execution and delivery of the Agreements by such Party nor the
performance by such Party of the transactions contemplated hereby will:

        (a)  violate or conflict with any of the provisions of the Articles of
Incorporation or By-Laws or other governing organizational document of such
Party; or

        (b)  violate or conflict with any provision of any law or order
applicable to such Party, or require any consent or approval of, filing with or
notice to any governmental or regulatory body.

        Section 3.03  Beneficial Ownership of Airwave Escrowed Shares.
                      -----------------------------------------------
        (a)  Each Airwave Investor Indemnitor represents and warrants that
Schedule I accurately and completely sets forth the number of Distributed
Airwave Escrowed Shares which are beneficially owned by such Airwave Investor
Indemnitor free and clear of any liens or encumbrances other than the Airwave
Escrow and the Ericsson Pledge Agreements (the "Allocated Distributed Airwave
Escrowed Shares" of such Airwave Investor Indemnitor), subject to the terms and
conditions of this Agreement and the Exhibits hereto.

        (b)  Each Airwave Investor Indemnitor represents and warrants that
Schedule II accurately and completely sets forth the number of Retained Airwave
Escrowed Shares which

                                       7
<PAGE>

are beneficially owned by such Airwave Investor Indemnitor free and clear of any
liens or encumbrances other than the Airwave Escrow and the Ericsson Pledge
Agreements (the "Allocated Retained Airwave Escrowed Shares" of such Airwave
Investor Indemnitor), subject to the terms and conditions of this Agreement and
the Exhibits hereto.

        Section 3.04  Beneficial Ownership of Digital Escrowed Shares.
                      ------------------------------------------------

        (a)  Digital represents and warrants that Schedule III accurately and
completely sets forth the number of Digital Escrowed Shares which are
beneficially owned by the Digital Members free and clear of any liens or
encumbrances other than the Digital Escrow (the "Allocated Distributed Digital
Escrowed Shares" of the Digital Members) subject to the terms and conditions of
this Agreement and the Exhibits hereto.

        (b)  Digital represents and warrants that Schedule IV accurately and
completely sets forth the number of Retained Digital Escrowed Shares which are
beneficially owned by the Digital Members free and clear of any liens or
encumbrances other than the Digital Escrow (the "Allocated Retained Digital
Escrowed Shares" of the Digital Members) subject to the terms and conditions of
this Agreement and the Exhibits hereto.

                                  ARTICLE IV

                               DISPUTE RESOLUTION

        Section 4.01  Arbitration.  The Parties agree that (i) the matters set
                      -----------
forth in 2.02(b) and 2.03(c); (ii) any controversy, claim or dispute arising out
of or relating to the construction, interpretation, performance, breach,
termination, enforceability or validity of this Agreement, the Airwave Escrow
Agreement or the Digital Escrow Agreement (collectively, the "Escrow
Agreements"); or (iii) the arbitration provisions contained herein, including
without limitation the determination of whether a Party has waived its rights to
arbitration hereunder or the enforceability of the arbitration provisions
hereunder, shall be determined by arbitration in accordance with, and based upon
the procedures set forth in, this ARTICLE IV (the foregoing (i), (ii) and (iii)
are hereinafter collectively referred to as the "Arbitration Matters"). The
Parties waive any objection to the arbitration for failure to join Trustmark,
Neeld (in his capacity as Escrow Holder of the Digital Escrowed Shares under and
pursuant to the terms of the License Purchase Agreement), the Airwave Escrow
Agent or the Digital Escrow Agent as necessary parties to arbitration.

        Section 4.02  Forum and Choice of Law.  The arbitration shall take place
                      -----------------------
in Jackson, Mississippi.  Except as provided in this Agreement, the arbitration
provisions of the State of Mississippi, Miss. Code Ann. (S) 11-15-1, et seq.
(the "Mississippi Arbitration Act") govern the Arbitration.  To the extent a
conflict exists between the provisions of the Miss. Arbitration Act and this
Agreement, the provisions of this Agreement control.  The arbitrators shall
determine the extent to which any issue is subject to arbitration and such
determination shall be made in accordance with the Mississippi Arbitration Act
and New York substantive law.  As between and among the Parties, the arbitrators
shall have the power to require pre-hearing discovery, and the Parties shall be
entitled to obtain discovery, to the same extent as permitted under the Miss.
Rules of Civil Procedure, including without limitation, the exchange of

                                       8
<PAGE>

documents and the noticing and taking of depositions.  Notwithstanding the
foregoing, the arbitrators selected under Section 4.03 may limit the number,
scope and timing of depositions, interrogatories or any other pre-hearing
discovery which would otherwise be available under the Miss. Rules of Civil
Procedure, including reduction of time limitations.  The Parties shall instruct
the arbitrators to set any limits on pre-hearing discovery within ten (10)
business days of the selection of the third arbitrator (the "Discovery
Commencement Date").  The aforementioned discovery rules shall be provided to
the Parties in writing on or before the Discovery Commencement Date.  The
Parties shall have one hundred and twenty (120) days from and after the
Discovery Commencement Date to complete their discovery (the "Discovery
Completion Date").  The arbitrators shall not have the authority to extend the
Discovery Completion Date, provided, however,  that the arbitrators may extend
                           --------  -------
the Discovery Completion Date where the conduct of a Party other than the Party
seeking an extension has impeded or delayed the discovery of the Party seeking
the extension.  To enforce the rights of the Parties to obtain discovery,
including without limitation of non-parties, the arbitrators and the parties to
the arbitration may utilize the subpoena power provided by the Miss. Arbitration
Act.  The arbitrators shall apply and be bound by the Federal Rules of Evidence
(as interpreted by the 2nd Circuit Court of Appeals) to all evidentiary matters
arising during any arbitration hearing.  With the exception to the law governing
the issue of the extent to which any issue is subject to arbitration, the rules
governing discovery and the rules governing evidence, as set forth above, the
law governing any claims or disputes arising out of or relating to the Escrow
Agreements shall be governed by the laws of the State of New York, without
regard to conflict of laws or choice of law rules, and the Arbitrators shall
follow and be bound by such laws.  To the extent there is a conflict between the
Miss. Arbitration Act and New York law concerning the extent to which any issue
is subject to arbitration, the Miss. Arbitration Act shall be applied.  To the
extent there is a conflict between the substantive law of the State of New York
and either the Federal Rules of Evidence or the Miss. Rules of Civil Procedure,
the substantive law of the State of New York shall be applied.  To the extent
that a conflict exists between the provisions of the Agreement and either the
New York substantive law, the Miss. Rules of Civil Procedure, or the Federal
Rules of Evidence, the provisions of this Agreement control.

        Section 4.03  Selection and Duties of Arbitrators.  The arbitration
                      -----------------------------------
proceeding shall be conducted before a panel of three arbitrators to be selected
in accordance with the procedures set forth in this Section 4.03. Within fifteen
(15) business days of the date upon which an Airwave Investor Indemnitor or a
Digital Investor Indemnitor provides notice under Section 2.02 (b) or Section
2.03(c) of this Agreement, the Airwave Investor Indemnitors and Digital Investor
Indemnitors, as applicable, shall select one (1) arbitrator and Tritel shall
select one (1) arbitrator. The Parties shall instruct the two arbitrators
selected to select a third arbitrator within five (5) business days of their
selection. Airwave and Digital shall not be entitled to select an arbitrator. If
the arbitrators selected by the Parties pursuant to this Section 4.03 are unable
or fail to agree upon the third arbitrator, the third arbitrator shall be
selected by the American Arbitration Association upon application made to it for
such purpose by the Parties. Each of the three arbitrators selected pursuant to
this Section must (1) be either (a) an attorney who has practiced law for at
least 15 years, working in either general commercial litigation or general
corporate matters or (b) a retired judge, and (2) must be under the age of 68
when appointed.

                                       9
<PAGE>

        Section 4.04  Arbitration Decision and Award.  The Parties shall
                      ------------------------------
instruct the arbitrators to conduct a hearing commencing on the fifth (5th)
business day following the Discovery Completion Date. The Parties shall instruct
the arbitrators to provide the Parties with five (5) days prior notice of the
date, time and place of the hearing. The hearing shall be conducted over a
period of days determined by the arbitrators but in no event shall the hearing
be conducted over a period of more than four (4) days. The arbitrators shall
only have the authority to render a decision concerning the Arbitration Matters.
The Parties shall instruct the arbitrators, to the extent practical, to render a
written decision no more than fourteen (14) business days following the
completion of the hearing. The written decision shall be delivered to the
Parties, the Digital Escrow Agent and the Airwave Escrow Agent. The arbitrators
shall have the authority to order and award equitable relief, injunctive relief,
specific performance, and/or compensatory damages. Notwithstanding any provision
in this Agreement, to the extent a Party seeks to pursue a claim for punitive
damages, such claim must be commenced in a court of competent jurisdiction
following any arbitration award pursuant to this ARTICLE IV. The arbitrators'
decision and any award contained therein shall be final, binding and conclusive
on the Parties subject to review or reversal by a court only to the extent and
only on the grounds provided in the Miss. Arbitration Act. The Parties
acknowledge and agree that the arbitration decision and award shall be entitled
to be enforced to the fullest extent permitted by law and entered in any court
of competent jurisdiction. The Parties further agree that a judgment of the
court shall be entered upon the award made pursuant to the arbitration in the
Circuit Court of the First Judicial District of Hinds County Mississippi, where
any review of the award shall be conducted.

        Section 4.05  Confidentiality.  The Parties and the Escrow Agents
                      ---------------
agree that they shall not disclose the contents of the arbitration or discovery
obtained from other parties to the arbitration, unless and only to the extent
required to enforce or challenge the arbitration award, as required by law, or
as necessary for required filings, tax returns, reports or audits.

        Section 4.06  Expenses.  Each party to any arbitration shall bear its
                      --------
own expense in relation thereto, including but not limited to such party's
attorneys' fees.  The arbitrators shall negotiate their compensation (the
"Arbitrators' Compensation") with the Parties prior to their engagement as
arbitrators.  The three arbitrators shall include in their written decision an
allocation of the Arbitrators' Compensation among Tritel, the Airwave Investor
Indemnitors and the Digital Investor Indemnitors; provided, however, that the
Airwave Investor Indemnitors and the Digital Investor Indemnitors, as
applicable, shall allocate any amount of the Arbitrators' Compensation allocated
to the Airwave Investor Indemnitors and the Digital Investor Indemnitors based
upon their pro rata ownership in Digital or Airwave, as applicable, as of
November 13, 2000.

        Section 4.07  Severability.  If any part of this ARTICLE IV is held to
                      ------------
be unenforceable, it shall be severed and shall not affect either the duty to
arbitrate hereunder or any other part of this ARTICLE IV.

                                       10
<PAGE>

                                   ARTICLE V

                                 MISCELLANEOUS

        Section 5.01  Exchange of Shares.  Tritel covenants and agrees to assist
                      ------------------
Digital and the Airwave Investor Indemnitors with the exchange of the Digital
Escrowed Shares and the Airwave Escrowed Shares, including but not limited to
instructing the applicable transfer agent to expedite the exchange of the
Digital Escrowed Shares and the Airwave Escrowed Shares.

        Section 5.02  Amendment.  This Agreement may be amended, supplemented,
                      ---------
or modified only by a written instrument duly executed by or on behalf of each
Party hereto.

        Section 5.03  Counterparts.  This Agreement may be executed in any
                      ------------
number of counterparts, each of which will be deemed an original, but all of
which together when executed and delivered to and by each Party, will constitute
one and the same instrument.

        Section 5.04  Headings.  The headings used in this Agreement have been
                      --------
inserted for convenience of reference only and do not define or limit the
provisions hereof.

        Section 5.05  Invalid Provisions.  If any provision of this Agreement is
                      ------------------
held to be illegal, invalid or unenforceable under any applicable present or
future law, and if the rights or obligations of any Party hereto under this
Agreement will not be materially and adversely affected thereby, (i) such
provision will be fully severable, (ii) this Agreement will be construed and
enforced as if such illegal, invalid or unenforceable provision had never
comprised a part hereof, (iii) the remaining provisions of this Agreement will
remain in full force and effect and will not be affected by the illegal, invalid
or unenforceable provision or by its severance herefrom and (iv) in lieu of such
illegal, invalid or unenforceable provision, there will be added automatically
as a part of this Agreement a legal, valid and enforceable provision as similar
in terms to such illegal, invalid or unenforceable provision as may be possible.

        Section 5.06  No Assignment; Binding Effect.  Neither this Agreement nor
                      -----------------------------
any right, interest or obligation hereunder may be assigned by any Party without
the prior written consent of each Party hereto and any attempt to do so will be
void, except for assignments and transfers by operation of law. Subject to the
preceding sentence, this Agreement is binding upon, inures to the benefit of and
is enforceable by the Parties hereto and their respective successors and
assigns.

        Section 5.07  Notice.  All notices, requests and other communications
                      ------
required to be sent hereunder must be in writing and will be deemed to have been
duly given only if provided personally or by confirmed facsimile transmission or
mailed (postage prepaid, certified or registered, return receipt requested) to
the Parties at the following addresses or facsimile numbers:

                                       11
<PAGE>

          If to Tritel to:

                Tritel Inc.
                P.O. Box 23033
                Jackson, MS 39225-3033
                111 E. Capitol Street, Suite 500
                Jackson Mississippi 39201
                Facsimile No.:  601-914-8285
                Attn:  General Counsel

          with copies to:

                TeleCorp PCS, Inc.
                1010 N. Glebe Road
                Arlington, VA 22201
                Attn:  Chief Financial Officer
                Facsimile No.:  (203) 236-1376

                and

                Cadwalader, Wickersham & Taft
                100 Maiden Lane
                New York, NY  10038
                Facsimile No.:  (212) 504-6666
                Attn:  Brian Hoffmann, Esq.

          If to Airwave Investor Indemnitors, to:

                Mercury PCS Investors, LLC
                200 East Capitol, Suite 1601
                Jackson, MS  39201
                Facsimile No.:  (601) 354-2477
                Attn:  Robert G. Mounger

                Clayton Associates, LLC
                113 Seaboard Lane
                Suite B-200
                Franklin, TN  37067-8215
                Facsimile No.:  (615) 320-0224
                Attn:  Chris Kyriopoulos

                                       12
<PAGE>

                M3, LLC
                Post Office Box 23033
                Jackson, MS  39225-3033
                111 E. Capitol Street Suite 500
                Jackson, MS 39201
                Facsimile No.:  (601) 914-8020
                Attn:  William M. Mounger, II

                McCarty Communications, LLC
                6360 I-55 North, Suite 480
                Jackson, MS  39211
                Facsimile No.:  (601) 991-0200
                Attn:  Marsha Wells

                DC Investment Partners Exchange Fund, L.P.
                One Burton Hills Blvd., Suite 180
                Nashville, TN  37215
                Facsimile No.:  (615) 263-0234
                Attn:  Joel Goldberg

                FCA Venture Partners I, L.P.
                By:  DC Investment Partners, LLC
                One Burton Hills Blvd., Suite 180
                Nashville, TN  37215
                Facsimile No.:  (615) 263-0234
                Attn:  Joel Goldberg

          with a copy to:

                Baker, Donelson, Bearman & Caldwell
                Post Office Box 14167
                Jackson, MS 39236
                4268 I-55 North
                Meadowbrook Office Park
                Jackson, MS 39211
                Facsimile No.:  601-351-2424
                Attn:  William S. Painter

          If to Southern Farm Bureau Life Insurance Company, to:

                Southern Farm Bureau Life Insurance Company
                1401 Livingston Lane
                Jackson, Mississippi 39205
                Facsimile No.:  (601) 321-2667
                Attn:  Joseph A. Purvis

                                       13
<PAGE>

          with a copy to:

                Phelps Dunbar, LLP
                Skytel Centre' Suite 500
                200 South Lamar Street
                P.O. Box 23066
                Jackson, MS  39225-3066
                Facsimile No.:  (601) 360-9777
                Attn:  Stephen M. Wilson.

          If to Airwave, to:

                222 Ridge Drive
                Jackson, MS  39716

                Facsimile No.:  _______________
                Attn:  E.B. Martin, Jr.

          with a copy to:

                Young, Williams, Henderson & Fuselier, P.A.
                P.O. Box 23059
                Jackson, MS  39225-3059
                210 East Capitol Street
                Suite 2000
                Jackson, MS  39201
                Facsimile No.:  (601) 355-6136
                Attn:  Don Goode

          If to Digital, to:

                Digital PCS, LLC
                c/o Southern Farm Bureau Life Insurance Company
                1401 Livingston Lane
                Jackson, Mississippi 39205
                Facsimile No.:  (601) 321-2667
                Attn:  Joseph A. Purvis

                                       14
<PAGE>

          with a copy to:

                Young Williams Henderson & Fuselier
                P.O. Box 23059
                Jackson, MS  39225
                210 East Capitol Street
                Suite 2000
                Jackson, MS  39201
                Facsimile No.:  (601) 355-6136
                Attn:  Don Goode

                Jerry M. Sullivan, Jr.
                110 Windsong Cove
                Ridgeland, MS  39157

          If to the Airwave Escrow Agent, to:

                Firstar Bank, N.A.
                Corporate Trust Department
                101 East Fifth Street
                St. Paul, MN 55101
                Facsimile No.: (651) 229-6415
                Attn: Frank Leslie

          If to the Digital Escrow Agent, to:

                Firstar Bank, N.A.
                Corporate Trust Department
                101 East Fifth Street
                St. Paul, MN 55101
                Facsimile No.: (651) 229-6415
                Attn: Frank Leslie

All such notices, requests and other communications will (i) if provided
personally to the address as provided in this Section 5.07, be deemed given upon
delivery, (ii) if provided by facsimile transmission to the facsimile number as
provided in this Section 5.07, be deemed given upon confirmation of receipt and
(iii) if provided by mail in the manner described above to the address as
provided in this Section 5.07, be deemed given upon receipt (in each case
regardless of whether such notice, request or other communication is received by
any other person to whom a copy of such notice is to be provided pursuant to
this Section 5.07).  Any Party from time to time may change its address,
facsimile number or other information for the purpose of notices to that Party
by giving notice specifying such change to the other Party hereto in the manner
set forth herein.

        Section 5.08  No Third Party Beneficiary.  The terms and provisions of
                      --------------------------
this Agreement are intended solely for the benefit of the Parties and their
respective successors or

                                       15
<PAGE>

permitted assigns, and it is not the intention of the Parties to confer third-
party beneficiary rights upon any other person.

        Section 5.09  Time of Essence.  With regard to all dates and time
                      ---------------
periods set forth or referred to in this Agreement, time is of the essence.

        Section 5.10  Waiver.  Any term or condition of this Agreement may be
                      ------
waived at any time by the Party that is entitled to the benefit thereof, but no
such waiver shall be effective unless expressly and unambiguously set forth in a
written instrument duly executed by or on behalf of the Party waiving such term
or condition. No waiver by any Party of any term or condition of this Agreement,
in any one or more instances, shall be deemed to be or construed as a waiver of
the same or any other term or condition of this Agreement on any future
occasion. All remedies, either under this Agreement or by law or otherwise
afforded, will be cumulative and not alternative.

        Section 5.11  Whole Agreement.  This Agreement supersedes and replaces
                      ---------------
all prior discussions and agreements between the Parties with respect to the
subject matter hereof, and contains the sole and entire agreement between the
Parties with respect to the subject matter hereof and all prior agreements,
understandings, representations and warranties are incorporated in this
Agreement, provided, however, that Article VIII of the Securities Purchase
Agreement and Article VII of the License Purchase Agreement shall remain in full
force and effect, subject only to the amendments to the terms thereto contained
in this Agreement.

                                       16
<PAGE>

          IN WITNESS WHEREOF, the Parties hereto duly authorized and executed
this Agreement on March 12, 2001.

                                 Tritel, Inc.

                                 By: /s/ Thomas H. Sullivan
                                     ------------------------------------
                                     Name:   Thomas H. Sullivan
                                          -------------------------------
                                     Title:  President, Treasurer & Chief
                                             Financial Officer

                                 Airwave Communications, LLC

                                 By: /s/ Joseph A. Purvis
                                     ------------------------------------
                                     Name:   Joseph A. Purvis
                                          -------------------------------
                                     Title:  Vice President, General Counsel
                                             & Secretary

                                 Digital PCS, LLC

                                 By: /s/ Joseph A. Purvis
                                     ------------------------------------
                                     Name:   Joseph A. Purvis
                                          -------------------------------
                                     Title:  Vice President, General Counsel
                                             & Secretary

                                 AIRWAVE INVESTOR INDEMNITORS

                                 Mercury PCS Investors, LLC

                                 By:  MSM, Inc., Manager

                                 Name: /s/ William M. Mounger, II
                                      -------------------------------
                                 Title:
                                       ------------------------------

                                       17
<PAGE>

                                 Clayton Associates, LLC

                                 By: /s/ Stuart C. McWharter
                                     -------------------------------
                                     Name:    Stuart C. McWharter
                                     -------------------------------
                                 Title: Managing Partner

                                 M3, LLC

                                 By:  /s/ William M. Mounger, II
                                      ------------------------------------
                                      Name:
                                           -------------------------------
                                      Title:
                                            ------------------------------

                                 McCarty Communications, LLC

                                 By:  /s/ Marsha M. Wells
                                      -------------------------------
                                      Name:  Marsha M. Wells
                                      Title: Member Manager

                                 DC Investment Partners Exchange Fund, L.P.

                                 By:  D.C. Investment Partners Fund, LLC,
                                      it's General Partner

                                 Name: /s/ D. Robert Crants, III
                                      -------------------------------
                                 Title:
                                       ------------------------------

                                       18
<PAGE>

                                 FCA Venture Partners I, L.P.

                                 By:  DC Investment Partners Fund, LLC,
                                      Its General Partner

                                 By: /s/ D. Robert Crants, III
                                     -----------------------------------
                                     Name:
                                           -----------------------------
                                     Title:
                                           -----------------------------

                                 Southern Farm Bureau Life Insurance Company

                                 By: /s/ Joseph A. Purvis
                                     -----------------------------------
                                 Name:   Joseph A. Purvis
                                       ---------------------------------
                                 Title: Vice President, General Counsel &
                                        Secretary

                                       19
<PAGE>

                                   Schedule I

                      Distributed Airwave Escrowed Shares
                      -----------------------------------

<TABLE>
<CAPTION>
Name                               Number of Tritel Shares            = Number of TeleCorp Shares
                                   Held                               Held
-------------------------------------------------------------------------------------------------
<S>                               <C>                                 <C>
Mercury PCS Investors, LLC                          1,174,164.57                          892,365
-------------------------------------------------------------------------------------------------
Clayton Associates, LLC                                11,736.15                            8,919
-------------------------------------------------------------------------------------------------
M3, LLC                                               654,009.33                          497,047
-------------------------------------------------------------------------------------------------
McCarty Communications, LLC                           469,663.01                          356,944
-------------------------------------------------------------------------------------------------
DC Investment Partners Exchange                       117,419.77                           89,239
 Fund, L.P.
-------------------------------------------------------------------------------------------------
FCA Venture Partners I, L.P.                           58,705.40                           44,616
-------------------------------------------------------------------------------------------------
Southern Farm Bureau                                3,538,934.01                        2,689,590
-------------------------------------------------------------------------------------------------
Total                                               6,024,632.24                        4,578,720
-------------------------------------------------------------------------------------------------
</TABLE>

                                       20
<PAGE>

                                  Schedule II

                        Retained Airwave Escrowed Shares
                        --------------------------------

<TABLE>
<CAPTION>
Name                               Number of Tritel Shares           = Number of TeleCorp Shares
                                   Held                              Held
-------------------------------------------------------------------------------------------------
<S>                               <C>                             <C>
Mercury PCS Investors, LLC                               242,879                          184,589
-------------------------------------------------------------------------------------------------
Clayton Associates, LLC                                    2,428                            1,844
-------------------------------------------------------------------------------------------------
M3, LLC                                                  135,284                          102,816
-------------------------------------------------------------------------------------------------
McCarty Communications, LLC                               97,152                           73,836
-------------------------------------------------------------------------------------------------
DC Investment Partners Exchange                           24,287                           18,458
 Fund, L.P.
-------------------------------------------------------------------------------------------------
FCA Venture Partners I, L.P.                              12,144                            9,229
-------------------------------------------------------------------------------------------------
Southern Farm Bureau                                     732,037                          556,348
-------------------------------------------------------------------------------------------------
Total                                                  1,246,211                          947,120
-------------------------------------------------------------------------------------------------
</TABLE>

                                       21
<PAGE>

                                  Schedule III

          Beneficial Ownership of Distributed Digital Escrowed Shares
          -----------------------------------------------------------

<TABLE>
<CAPTION>
Name                            Tritel Shares Beneficially Held     = Number of TeleCorp Shares
                                                                    Beneficially Held
-------------------------------------------------------------------------------------------------
<S>                             <C>                               <C>
Mercury PCS Investors, LLC                               178,501                          135,661
-------------------------------------------------------------------------------------------------
Clayton Associates, LLC                                    1,785                            1,357
-------------------------------------------------------------------------------------------------
M3, LLC                                                   99,425                           75,563
-------------------------------------------------------------------------------------------------
McCarty Communications, LLC                               72,145                           54,830
-------------------------------------------------------------------------------------------------
DC Investment Partners                                    17,850                           13,567
 Exchange Fund, L.P.
-------------------------------------------------------------------------------------------------
FCA Venture Partners I, L.P.                               8,924                            6,782
-------------------------------------------------------------------------------------------------
Southern Farm Bureau                                     543,608                          413,142
-------------------------------------------------------------------------------------------------
E.B. Martin, Jr.                                          38,949                           29,601
-------------------------------------------------------------------------------------------------
Jerry M. Sullivan, Jr.                                    38,949                           29,601
-------------------------------------------------------------------------------------------------
William M. Mounger, II                                    38,949                           29,601
-------------------------------------------------------------------------------------------------
Total                                                  1,039,085                          789,705
-------------------------------------------------------------------------------------------------
</TABLE>

                                       22
<PAGE>

                                  Schedule IV

            Beneficial Ownership of Retained Digital Escrowed Shares
            --------------------------------------------------------

<TABLE>
<CAPTION>
Name                            Tritel Shares Beneficially Held     = Number of TeleCorp Shares
                                                                    Beneficially Held
-------------------------------------------------------------------------------------------------
<S>                             <C>                               <C>
Mercury PCS Investors, LLC                                42,043                           31,952
-------------------------------------------------------------------------------------------------
Clayton Associates, LLC                                      420                              319
-------------------------------------------------------------------------------------------------
M3, LLC                                                   23,418                           17,798
-------------------------------------------------------------------------------------------------
McCarty Communications, LLC                               16,817                           12,781
-------------------------------------------------------------------------------------------------
DC Investment Partners                                     4,205                            3,195
 Exchange Fund, L.P.
-------------------------------------------------------------------------------------------------
FCA Venture Partners I, L.P.                               2,102                            1,598
-------------------------------------------------------------------------------------------------
Southern Farm Bureau                                     126,717                           96,304
-------------------------------------------------------------------------------------------------
E.B. Martin, Jr.                                          12,689                            9,644
-------------------------------------------------------------------------------------------------
Jerry M. Sullivan, Jr.                                    12,689                            9,644
-------------------------------------------------------------------------------------------------
William M. Mounger, II                                    12,689                            9,644
-------------------------------------------------------------------------------------------------
Total                                                    253,789                          192,879
-------------------------------------------------------------------------------------------------
</TABLE>

                                       23
<PAGE>

                                   Exhibit A

                            AIRWAVE ESCROW AGREEMENT

          This ESCROW AGREEMENT, dated as of __________, 2001 is entered into by
and among Tritel, Inc., a Delaware corporation and wholly-owned subsidiary of
TeleCorp PCS, Inc. ("Tritel"), the entities set forth on Schedule I ( the
                     ------
"Airwave Investor Indemnitors") and Firstar Bank, N.A., having an address of 101
-----------------------------
East Fifth Street, St. Paul, MN 55101, as escrow agent (the "Escrow Agent")
                                                             ------------
(each of the foregoing a "Party" and collectively the "Parties").  Capitalized
                          -----                        -------
terms not otherwise defined herein shall have the meanings ascribed to them in
the Settlement Agreement (as defined herein) or the Securities Purchase
Agreement (as defined herein) as applicable.

          WHEREAS, Tritel and the Airwave Investor Indemnitors are parties to a
Settlement Agreement, dated as of the date hereof (the "Settlement Agreement");

          WHEREAS, Tritel and the Airwave Investor Indemnitors are parties to
the Securities Purchase Agreement dated as of May 20, 1998 (the "Securities
                                                                 ----------
Purchase Agreement");
------------------

          WHEREAS, Tritel became a wholly-owned subsidiary of TeleCorp PCS,
Inc., a Delaware corporation ("TeleCorp"), pursuant to a merger (the "Merger")
                               --------                               ------
that was consummated on November 13, 2000;

          WHEREAS, pursuant to the terms of the Merger, each share of Tritel
Class A Common Stock ("Tritel Shares") was converted, effective on the
                       -------------
Reconciliation Date, into 0.76 shares of TeleCorp Class A Voting Common Stock
("TeleCorp Shares");
-----------------

          WHEREAS, the Parties hereto wish to designate the Escrow Agent to
administer an escrow for the benefit of the Parties hereto on the terms and
subject to the conditions set forth in this Escrow Agreement;

          NOW, THEREFORE, in consideration of the mutual covenants and
agreements set forth in this Escrow Agreement, and for other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, the
Parties agree as follows:

                                   ARTICLE I

                              TERMS OF THE ESCROW

        Section 1.01  Appointment of the Escrow Agent; Deposit of Escrowed
                      ----------------------------------------------------
Shares.
------
Tritel and the Airwave Investor Indemnitors hereby constitute and appoint the
Escrow Agent as, and the Escrow Agent hereby agrees to assume and perform the
duties of, escrow agent under and pursuant to this Escrow Agreement. The Parties
shall arrange for the Escrow Agent to

                                      A-1
<PAGE>

receive 1,246,211 Tritel Shares, or in the event shares are delivered in the
form of TeleCorp Shares, 947,120 TeleCorp Shares (such shares and the TeleCorp
Shares into which they are converted being the "Escrowed Shares").
                                                ---------------

        Section 1.02  Stock Certificates for Escrowed Shares.  In the event the
                      --------------------------------------
Escrow Agent receives the Escrowed Shares in the form of Tritel Shares, the
Escrow Agent shall, promptly following the receipt of such Tritel Shares, take
any and all action necessary to obtain stock certificates reflecting the
conversion, pursuant to the Merger, of the Tritel Shares that constitute
Escrowed Shares into TeleCorp Shares.

        Section 1.03  The Escrow Fund.  The Escrowed Shares, any cash resulting
                      ---------------
from the disposition of the Escrowed Shares pursuant to Section 1.05 herein, any
stock dividends paid on any Escrowed Shares, or any rights or securities into
which the Escrowed Shares are convertible or have been converted, and all
earnings on any of the foregoing (collectively, the "Escrow Fund") shall be held
                                                     -----------
by the Escrow Agent as a trust fund in separate accounts maintained for the
purpose, on the terms set forth in, and subject to the conditions of, this
Escrow Agreement. The Escrow Fund shall be divided into seven (7) accounts, each
of which shall be an account for a separate Airwave Investor Indemnitor and
which shall contain the number of Escrowed Shares set forth next to the name of
the Airwave Investor Indemnitor on Schedule I hereto (each an "Account"). The
                                                               --------
Escrow Agent shall maintain accurate and current balance information with regard
to each Account and shall maintain each Account separately. The Escrow Fund
shall not be subject to lien or attachment by any creditor of any party hereto
and shall be used solely for the purpose set forth in this Escrow Agreement.
Amounts held in the Escrow Fund shall not be available to, and shall not be used
by, the Escrow Agent to set off any obligations of any Party hereto owing to the
Escrow Agent in any capacity.

        Section 1.04  Investment of the Escrow Fund.  The Escrow Agent shall
                      -----------------------------
invest and reinvest all cash funds, if any, held from time to time as part of
the Escrow Fund, in its discretion, in demand or time deposits in, certificates
of deposit of or bankers' acceptances issued by a depository institution or
trust company incorporated under the laws of the United States of America, any
State thereof or the District of Columbia or such other investments as the
Parties shall approve in writing. If the Escrow Agent is so required to invest
the Escrow Fund, then the Escrow Agent shall invest all or any part of the
Escrow Fund in such a manner so as to distribute the Escrow Fund as provided
herein in immediately available funds, or, if the Escrow Fund consists of
securities, the Escrow Agent shall make such distributions by transferring
certificates representing such securities.

        Section 1.05  Sale of Escrowed Shares.  Promptly upon the Escrow Agent's
                      -----------------------
receipt of written instructions from any Airwave Investor Indemnitor to sell a
specified number of Escrowed Shares, the Escrow Agent shall execute the sale
requested by such instructions; provided, however, that the Escrow Agent shall
                                --------- --------
not in a single sale or series of sales, sell a number of Escrowed Shares on
behalf of an Airwave Investor Indemnitor that is greater than the number of
Escrowed Shares in the Account of such Airwave Investor Indemnitor, and provided
                                                                        --------
further, that the proceeds of any sale pursuant to this Section 1.05 shall
-------
immediately become part of such Account.

                                      A-2
<PAGE>

        Section 1.06  Notice.  Upon the Escrow Agent's receipt of any notice or
                      ------
certificate provided for in this Escrow Agreement, the Escrow Agent shall
promptly provide a copy of such notice or certificate to each Party.

                                  ARTICLE II

                        DISTRIBUTION OF THE ESCROW FUND

        Section 2.01  Claim, Objection and Resolution Certificates.
                      --------------------------------------------

        (a)  The Escrow Agent shall distribute to each of the Airwave Investor
Indemnitors the portion of the Escrow Fund in the Account held for such Airwave
Investor Indemnitor, on the sixth day after the "Airwave Escrow Termination
Date" (as hereinafter defined) (subject to delays in delivering stock
certificates not caused by the Escrow Agent), unless the Escrow Agent has
                                              ------
received during the period commencing on the Airwave Escrow Termination Date and
ending at 5:00 pm, New York City Time on the date which is five (5) business
days following the Airwave Escrow Termination Date, a certificate signed by the
Secretary of Tritel (i) stating that Tritel has provided the Airwave Investor
Indemnitors with notice pursuant to Section 2.02(a) of the Settlement Agreement,
and (ii) setting forth the dollar amount to which Tritel claims Tritel is
entitled (a "Claim Certificate"). As used herein, the "Airwave Escrow
             -----------------
Termination Date" shall mean the earlier to occur of (x) the date the Airwave
Investor Indemnitors and Tritel definitively agree in writing that all the
matters related to the Airwave Indemnity Obligation have been dismissed, settled
or otherwise finally disposed of; or (y) October 15, 2001.

        (b)  If Tritel has timely provided a Claim Certificate, on the eleventh
business day following the Escrow Agent's receipt of such Claim Certificate
(subject to delays in delivering stock certificates not caused by the Escrow
Agent), the Escrow Agent shall (i) distribute to Tritel from the Escrow Fund by
deducting from the Account of each Airwave Investor Indemnitor such Airwave
Investor Indemnitor's pro rata share of such distribution (x) the dollar amount
set forth in the Claim Certificate, or, in the event that an Account does not
contain sufficient cash, (y) the number of Escrowed Shares which if sold at the
"Market Price" (as hereinafter defined), would equal the dollar amount set forth
in the Claim Certificate after deducting the cost of commissions for such sale,
rounded up to the nearest whole TeleCorp Share, and (ii) shall distribute to
each Airwave Investor Indemnitor the remaining balance in the Account of such
Airwave Investor Indemnitor; provided, however, that notwithstanding the
                             --------  -------
foregoing, the Escrow Agent shall not make such distribution to Tritel pursuant
to (i) above from the Account of any Airwave Investor Indemnitor which on or
prior to the tenth business day following the Escrow Agent's receipt of a Claim
Certificate provides the Escrow Agent with a certificate stating that such
Airwave Investor Indemnitor has provided Tritel with notice pursuant to Section
2.02(b) of the Settlement Agreement (an "Objection Certificate"). For purposes
                                         ---------------------
of this Section 2.01, "Market Price" means the average of the closing prices for
TeleCorp Shares for the ten consecutive trading days commencing 15 days before
the date on which payment is made.

        (c)  Notwithstanding any provision in this Escrow Agreement, upon the
Escrow Agent's receipt, at any time, of a certificate signed by the other
Parties hereto (i) stating

                                      A-3
<PAGE>

that all indemnifiable matters pursuant to the Securities Purchase Agreement
have been resolved, and (ii) setting forth instructions for the distribution of
the Escrow Fund (a "Resolution Certificate"), the Escrow Agent shall promptly
                    ---------- -----------
distribute the Escrow Fund in accordance with the instructions contained in such
certificate and this Escrow Agreement shall terminate.

        (d)  In the event any Airwave Investor Indemnitor timely provides an
Objection Certificate, the Escrow Agent shall retain in escrow the portion of
the Escrow Fund in the Account of such Airwave Investor Indemnitor(s) until the
Escrow Agent receives (i) a Resolution Certificate, or (ii) instructions for the
distribution of the Escrow Fund from a three member panel certifying that it is
the board of arbitration that has been selected pursuant to ARTICLE IV of the
Settlement Agreement, in which case the Escrow Agent shall promptly comply with
such instructions.

                                  ARTICLE III

                                  TERMINATION

        Section 3.01  Termination.  This Escrow Agreement and the Escrow
                      -----------
Agent's obligations hereunder shall terminate upon a distribution of the Entire
Escrow Fund made pursuant to Section 2.01 of this Escrow Agreement.

                                  ARTICLE IV

                                THE ESCROW AGENT

        Section 4.01  Duties and Obligations of the Escrow Agent.  The duties
                      ------------------------------------------
and obligations of the Escrow Agent shall be limited to, and determined solely
by, the provisions of this Escrow Agreement and the notices delivered in
accordance herewith, and other than as provided herein with regard to references
to the Agreement, the Escrow Agent is not charged with knowledge of, or any
duties or responsibilities in respect of, any other agreement or document. In
furtherance and not in limitation of the foregoing:

        (i)   the Escrow Agent shall not be liable for any loss of interest
     sustained as a result of investments made hereunder, if any, in accordance
     with the terms hereof, including any liquidation of any investment of the
     Escrow Fund prior to its maturity effected in order to make a payment
     required by the terms of this Escrow Agreement;

        (ii)  the Escrow Agent shall be fully protected in relying in good faith
     upon any written certification, notice, direction, request, waiver,
     consent, receipt or other document that the Escrow Agent reasonably
     believes to be genuine and duly authorized, executed and delivered;

        (iii) the Escrow Agent shall not be liable for any error of judgment, or
     for any act done or omitted by it, or for any mistake in fact or law, or
     for anything that it may do or refrain from doing in connection herewith;
     provided, however, that notwithstanding any other provision in this Escrow
     --------  -------
     Agreement, the Escrow Agent shall be liable for its willful misconduct, bad
     faith or gross negligence or breach of this Escrow Agreement;

                                      A-4
<PAGE>

        (iv)   the Escrow Agent may seek the advice of legal counsel selected
     with reasonable care in the event of any dispute or question as to the
     construction of any of the provisions of this Escrow Agreement or its
     duties hereunder, and it shall incur no liability and shall be fully
     protected in respect of any action taken, omitted or suffered by it in good
     faith in accordance with the opinion of such counsel;

        (v)    in the event that the Escrow Agent shall in any instance, after
     seeking the advice of legal counsel pursuant to the immediately preceding
     clause, in good faith be uncertain as to its duties or rights hereunder, it
     shall be entitled to refrain from taking any action in that instance and
     its sole obligation, in addition to those of its duties hereunder as to
     which there is no such uncertainty, shall be to keep safely all property
     held in the Escrow Fund until it shall be directed otherwise in a
     Resolution Certificate or by a final arbitration decision or award issued
     pursuant to Article IV of the Agreement; provided, however, that in the
                                              --------  -------
     event that the Escrow Agent has not received such written direction or
     arbitration decision or award within one hundred eighty (180) calendar days
     after requesting the same, it shall have the right to interplead Tritel and
     the Airwave Investor Indemnitors in an arbitration proceeding to be
     conducted in accordance with Article IV of the Agreement;

        (vi)   the Escrow Agent may execute any of its powers or
     responsibilities hereunder and exercise any rights hereunder either
     directly or by or through agents or attorneys selected with reasonable
     care;

        (vii)  nothing in this Escrow Agreement shall be deemed to impose upon
     the Escrow Agent any duty to qualify to do business or to act as a
     fiduciary or otherwise in any jurisdiction other than the state of New
     York; and

        (viii) the Escrow Agent shall not be responsible for and shall not be
under a duty to examine or pass upon the validity, binding effect, execution or
sufficiency of this Escrow Agreement or of any agreement amendatory or
supplemental hereto.

        Section 4.02  Cooperation.  Tritel and the Airwave Investor Indemnitors
                      -----------
shall provide to the Escrow Agent all instruments and documents within their
respective powers to provide that are necessary for the Escrow Agent to perform
the Escrow Agent's duties and responsibilities hereunder.

        Section 4.03  Fees and Expenses; Indemnity.  The Escrow Agent shall be
                      ----------------------------
entitled to receive a monthly fee of $175 for each full month that the Escrow
Agent serves as the Escrow Agent under this Agreement. Such fee shall be payable
semi-annually with the first payment payable on the date hereof. Such first
payment shall be non-refundable, regardless of the date on which this Escrow
Agreement terminates. Tritel shall pay half of such fee and the Airwave Investor
Indemnitors shall each pay an equal portion of the remaining half of such fee.
Tritel and the Airwave Investor Indemnitors shall reimburse and indemnify the
Escrow Agent for, and hold it harmless against, any loss, damages, cost or
expense, including but not limited to reasonable attorneys' fees, reasonably
incurred by the Escrow Agent in connection with the Escrow Agent's performance
of its duties and obligations under this Escrow Agreement, as well as the
reasonable costs and expenses of defending against any claim or liability
relating to this

                                      A-5
<PAGE>

Escrow Agreement; provided, however, that notwithstanding the foregoing, Tritel
                  --------  -------
and the Airwave Investor Indemnitors shall not be required to indemnify the
Escrow Agent for any such loss, liability, cost or expense arising as a result
of the Escrow Agent's willful misconduct, bad faith or gross negligence or
breach of this Escrow Agreement.

        Section 4.04  Resignation and Removal of the Escrow Agent. The Escrow
                      -------------------------------------------
Agent may resign upon thirty (30) days' prior written notice to Tritel and the
Airwave Investor Indemnitors. In addition, the Escrow Agent may be removed and
replaced on a date designated in a written instrument jointly signed by Tritel
and the Airwave Investor Indemnitors and delivered to the Escrow Agent.
Notwithstanding the foregoing, no such resignation or removal shall be effective
until a successor escrow agent has acknowledged its appointment as such as
provided in paragraph (b) below. In either event, upon the effective date of
such resignation or removal, the Escrow Agent shall deliver the property
comprising the Escrow Fund to such successor escrow agent, together with such
records maintained by the Escrow Agent in connection with its duties hereunder
and other information with respect to the Escrow Fund as such successor may
reasonably request.

        (a)  If a successor escrow agent shall not have acknowledged its
appointment as such as provided in paragraph (b) below, in the case of a
resignation, prior to the expiration of thirty (30) calendar days following the
date of a notice of resignation or, in the case of a removal, on the date
designated for the Escrow Agent's removal, as the case may be, because Tritel
and the Airwave Investor Indemnitors are unable to agree on a successor escrow
agent, or for any other reason, the Escrow Agent may select a successor escrow
agent and any such resulting appointment shall be binding upon all of the
parties to this Escrow Agreement.

        (b)  Upon written acknowledgment by a successor escrow agent appointed
in accordance with the foregoing provisions of this Section 4.04 of its
agreement to serve as escrow agent hereunder and the receipt of the property
then comprising the Escrow Fund, the Escrow Agent shall be fully released and
relieved of all duties, responsibilities and obligations under this Escrow
Agreement, except as otherwise provided herein, and such successor escrow agent
shall for all purposes hereof be the Escrow Agent.

                                   ARTICLE V

                                 MISCELLANEOUS
        Section 5.01  Amendment.  This Escrow Agreement may be amended,
                      ---------
supplemented or modified only by a written instrument duly executed by or on
behalf of each Party hereto.

        Section 5.02  Counterparts.  This Escrow Agreement may be executed in
                      ------------
any number of counterparts, each of which will be deemed an original, but all of
which, when executed and delivered to and by each Party, together will
constitute one and the same instrument.

        Section 5.03  GOVERNING LAW; JURISDICTION.  THIS ESCROW AGREEMENT SHALL
                      ---------------------------
BE DEEMED TO HAVE BEEN CONSUMMATED IN NEW

                                      A-6
<PAGE>

YORK COUNTY, IN THE STATE OF NEW YORK. ALL DISPUTES AND PROCEEDINGS BY AND
BETWEEN THE PARTIES WILL BE SOLELY GOVERNED, CONSTRUED AND ENFORCED IN
ACCORDANCE WITH THE INTERNAL LAW OF THE STATE OF NEW YORK WITHOUT REGARD TO ITS
CONFLICTS AND CHOICE OF LAW RULES. THE PARTIES AND THE ESCROW AGENT AGREE THAT
ANY CONTROVERSY, CLAIM OR DISPUTE ARISING OUT OF OR RELATING TO THIS ESCROW
AGREEMENT, OR THE CONSTRUCTION, INTERPRETATION, PERFORMANCE, BREACH,
TERMINATION, ENFORCEABILITY OR VALIDITY OF THE ESCROW AGREEMENTS OR THE
ARBITRATION PROVISIONS CONTAINED THEREIN, INCLUDING WITHOUT LIMITATION THE
DETERMINATION OF THE SCOPE OF THIS ESCROW AGREEMENT TO ARBITRATE, SHALL BE
DETERMINED BY ARBITRATION IN ACCORDANCE WITH THE ARBITRATION PROVISION SET FORTH
IN ARTICLE IV OF THE AGREEMENT.

        Section 5.04  Headings.  The headings used in this Escrow Agreement have
                      --------
been inserted for convenience of reference only and do not define or limit the
provisions hereof.

        Section 5.05  Invalid Provisions.  If any provision of this Escrow
                      ------------------
Agreement is held to be illegal, invalid or unenforceable under any applicable
present or future law, and if the rights or obligations of any party hereto
under this Escrow Agreement will not be materially and adversely affected
thereby, (i) such provision will be fully severable, (ii) this Escrow Agreement
will be construed and enforced as if such illegal, invalid or unenforceable
provision had never comprised a part hereof, (iii) the remaining provisions of
this Escrow Agreement will remain in full force and effect and will not be
affected by the illegal, invalid or unenforceable provision or by its severance
herefrom and (iv) in lieu of such illegal, invalid or unenforceable provision,
there will be added automatically as a part of this Escrow Agreement a legal,
valid and enforceable provision as similar in terms to such illegal, invalid or
unenforceable provision as may be possible.

        Section 5.06  No Assignment; Binding Effect.  Neither this Escrow
                      -----------------------------
Agreement nor any right, interest or obligation hereunder may be assigned by any
Party without the prior written consent of each Party hereto and any attempt to
do so will be void, except for assignments and transfers by operation of law.
Subject to the preceding sentence, this Escrow Agreement is binding upon, inures
to the benefit of and is enforceable by the Parties hereto and their respective
successors and assigns.

        Section 5.07  Notices.  All notices, requests and other communications
                      -------
required to be sent hereunder must be in writing and will be deemed to have been
duly given only if delivered personally or by confirmed facsimile transmission
or mailed (postage prepaid, certified or registered, return receipt requested)
to the Parties at the following addresses or facsimile numbers:

                                      A-7
<PAGE>

          If to Tritel to:

                Tritel, Inc.
                111 E. Capitol Street, Suite 500
                Jackson Mississippi 39201
                P.O. Box 23033
                Jackson, MS  39225-3033
                Facsimile No.:  (601) 914-8285
                Attn:  General Counsel

          with copies to:

                TeleCorp PCS, Inc.
                1010 N. Glebe Road
                Arlington, VA 22201
                Attn:  Chief Financial Officer
                Facsimile No.:  (203) 236-1376

                and

                Cadwalader, Wickersham & Taft
                100 Maiden Lane
                New York, NY  10038
                Facsimile No.:  (212) 504-6666
                Attn:  Brian Hoffmann, Esq.

          If to Airwave Investor Indemnitors, to:

                Mercury PCS Investors, LLC
                200 East Capitol, Suite 1601
                Jackson, MS  39201
                Facsimile No.:  (601) 354-2477
                Attn:  Robert G. Mounger

                Clayton Associates, LLC
                113 Seaboard Lane
                Suite B-200
                Franklin, TN  37067-8215
                Facsimile No.:  (615) 320-0224
                Attn:  Chris Kyriopoulos

                                      A-8
<PAGE>

                M3, LLC
                Post Office Box 23033
                Jackson, MS  39225-3033
                111 E. Capitol Street, Suite 500
                Jackson, MS 39201
                Facsimile No.:  (601) 914-8020
                Attn:  William M. Mounger, II

                McCarty Communications, LLC
                6360 I-55 North, Suite 480
                Jackson, MS  39211
                Facsimile No.:  (601) 991-0200
                Attn:  Marsha Wells

                DC Investment Partners Exchange Fund, L.P.
                One Burton Hills Blvd., Suite 180
                Nashville, TN  37215
                Facsimile No.:  (615) 263-0234
                Attn:  Joel Goldberg

                FCA Venture Partners I, L.P.
                By:  DC Investment Partners, LLC
                One Burton Hills Blvd., Suite 180
                Nashville, TN  37215
                Facsimile No.:  (615) 263-0234
                Attn:  Joel Goldberg

          with a copy to:

                Baker, Donelson, Bearman & Caldwell
                4268 I-55 North
                Meadowbrook Office Park
                Jackson, MS 39211
                Facsimile No.:  601-351-2424
                Attn:  William S. Painter

          If to Southern Farm Bureau Life Insurance Company, to:

                1401 Livingston Lane
                Jackson, MS  39205
                Facsimile No.:  601 321-2667
                Attn:  Joseph A. Purvis

                                      A-9
<PAGE>

          with a copy to:

                Phelps Dunbar, LLP
                P.O. Box 23066
                Jackson, MS  39225-3066
                Facsimile No.:  (601) 360-9777
                Attn:  Steve Wilson

          If to Airwave Escrow Agent, to:

                Firstar Bank N.A.
                Corporate Trust Department
                101 East Fifth Street
                St. Paul, MN  55101
                Facsimile No.: 651 229-6415
                Attn:  Frank Leslie

All such notices, requests and other communications will (i) if delivered
personally to the address as provided in this Section 5.07, be deemed given upon
delivery, (ii) if delivered by facsimile transmission to the facsimile number as
provided in this Section 5.07, be deemed given upon confirmation of receipt, and
(iii) if delivered by mail in the manner described above to the address as
provided in this Section 5.07, be deemed given upon receipt (in each case
regardless of whether such notice, request or other communication is received by
any other person to whom a copy of such notice is to be delivered pursuant to
this Section 5.07).  Any Party from time to time may change its address,
facsimile number or other information for the purpose of notices to that Party
by giving notice specifying such change to the other Parties hereto in the
manner set forth herein.

        Section 5.08  No Third Party Beneficiary.  The terms and provisions of
                      --------------------------
this Escrow Agreement are intended solely for the benefit of the Parties and
their respective successors or permitted assigns, and it is not the intention of
the Parties to confer third-party beneficiary rights upon any other person.

        Section 5.09  Waiver.  Any term or condition of this Escrow Agreement
                      ------
may be waived at any time by the Party that is entitled to the benefit thereof,
but no such waiver shall be effective unless expressly set forth in a written
instrument duly executed by or on behalf of the Party waiving such term or
condition. No waiver by any Party of any term or condition of this Escrow
Agreement, in any one or more instances, shall be deemed to be or construed as a
waiver of the same or any other term or condition of this Escrow Agreement on
any future occasion. All remedies, either under this Escrow Agreement or by law
or otherwise afforded, will be cumulative and not alternative.

                                      A-10
<PAGE>

          IN WITNESS WHEREOF, the parties hereto have caused this Escrow
Agreement to be executed as of the date first above written.

                                 Tritel, Inc.

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

                                 AIRWAVE INVESTOR INDEMNITORS

                                 Mercury PCS Investors, LLC

                                 By:  MSM, Inc., Manager

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

                                 Clayton Associates, LLC

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

                                 M3, LLC

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

                                      A-11
<PAGE>

                                 McCarty Communications, LLC

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

                                 DC Investment Partners Exchange Fund, L.P.

                                 By:  DC Investment Partners, LLC,
                                         it's General Partner

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

                                 FCA Venture Partners I, L.P.

                                 By:  DC Investment Partners, LLC,

                                  Its General Partner

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

                                 Southern Farm Bureau Life Insurance Company

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

                                      A-12
<PAGE>

                                 Escrow Agent

                                 Firstar Bank N.A.

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

                                      A-13
<PAGE>

                            Schedule I to Exhibit A

                          Airwave Investor Indemnitors
                          ----------------------------

<TABLE>
<CAPTION>
Name                               Number of Tritel Shares Held     = Number of TeleCorp Shares
                                                                    Held
-------------------------------------------------------------------------------------------------
<S>                               <C>                             <C>
Mercury PCS Investors, LLC                               242,879                          184,589
-------------------------------------------------------------------------------------------------
Clayton Associates, LLC                                    2,428                            1,844
-------------------------------------------------------------------------------------------------
M3, LLC                                                  135,284                          102,816
-------------------------------------------------------------------------------------------------
McCarty Communications, LLC                               97,152                           73,836
-------------------------------------------------------------------------------------------------
DC Investment Partners Exchange                           24,287                           18,458
 Fund, L.P.
-------------------------------------------------------------------------------------------------
FCA Venture Partners I, L.P.                              12,144                            9,229
-------------------------------------------------------------------------------------------------
Southern Farm Bureau                                     732,037                          556,348
-------------------------------------------------------------------------------------------------
Total                                                  1,246,211                          947,120
-------------------------------------------------------------------------------------------------
</TABLE>

                                      A-14
<PAGE>

                                   Exhibit B

                            DIGITAL ESCROW AGREEMENT

          This ESCROW AGREEMENT, dated as of __________, 2001 is entered into by
and among Tritel, Inc., a Delaware corporation and wholly-owned subsidiary of
TeleCorp PCS, Inc. ("Tritel"), Digital PCS, LLC, a Mississippi limited liability
                     ------
company ("Digital"), and Firstar Bank, N.A., having an address of 101 East Fifth
Street, St. Paul, MN 55101, Corporate Trust Department, as escrow agent (the
"Escrow Agent") (each of the foregoing a "Party" and collectively the
-------------                             -----
"Parties").  Capitalized terms not otherwise defined herein shall have the
 -------
meanings ascribed to them in the Settlement Agreement (as defined herein) or the
License Purchase Agreement (as defined herein) as applicable.

          WHEREAS, Tritel and Digital and the Escrow Agent are parties to a
Settlement Agreement, dated as of the date hereof (the "Settlement Agreement");

          WHEREAS, Tritel and Digital are parties to the License Purchase
Agreement dated as of May 20, 1999 (the "License Purchase Agreement");
                                         --------------------------

          WHEREAS, Tritel became a wholly-owned subsidiary of TeleCorp PCS,
Inc., a Delaware corporation ("TeleCorp"), pursuant to a merger (the "Merger")
                               --------                               ------
that was consummated on November 13, 2000;

          WHEREAS, pursuant to the terms of the Merger, each share of Tritel
Class A Common Stock ("Tritel Shares"), was converted, effective on the
                       -------------
Reconciliation Date, into 0.76 shares of TeleCorp Class A Voting Common Stock
("TeleCorp Shares");
-----------------

          WHEREAS, the Parties hereto wish to designate the Escrow Agent to
administer an escrow for the benefit of the Parties hereto on the terms and
subject to the conditions set forth in this Escrow Agreement;

          NOW, THEREFORE, in consideration of the mutual covenants and
agreements set forth in this Escrow Agreement, and for other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, the
Parties agree as follows:

                                   ARTICLE I

                              TERMS OF THE ESCROW

        Section 1.01  Appointment of the Escrow Agent; Deposit of Escrowed
                      ----------------------------------------------------
Shares.  Tritel and Digital hereby constitute and appoint the Escrow
------
Agent as, and the Escrow Agent hereby agrees to assume and perform the duties
of, escrow agent under and pursuant to this Escrow Agreement. The Parties shall
arrange for the Escrow Agent to receive 253,789 Tritel

                                      B-1
<PAGE>

Shares, or in the event shares are delivered in the form of TeleCorp Shares,
192,879 TeleCorp Shares (such shares and the TeleCorp Shares into which they are
converted being the "Escrowed Shares").
                     ---------------

        Section 1.02  Stock Certificates for Escrowed Shares. In the event the
                      --------------------------------------
Escrow Agent receives the Escrowed Shares in the form of Tritel Shares, the
Escrow Agent shall, promptly following the receipt of such Tritel Shares, take
any and all action necessary to obtain stock certificates reflecting the
conversion, pursuant to the Merger, of the Tritel Shares that constitute
Escrowed Shares into TeleCorp Shares.

        Section 1.03  The Escrow Fund.  The Escrowed Shares, any cash
                      ---------------
resulting from the disposition of the Escrowed Shares pursuant to Section 1.05
herein, any stock dividends paid on any Escrowed Shares, or any rights or
securities into which the Escrowed Shares are convertible or have been
converted, and all earnings on any of the foregoing (collectively, the "Escrow
                                                                        ------
Fund") shall be held by the Escrow Agent as a trust fund on the terms set forth
----
in, and subject to the conditions of, this Escrow Agreement. Any of the persons
set forth on Schedule I hereto (each a "Digital Member") may elect by written
                                        --------------
notice to Digital, Tritel and the Escrow Agent, to require Digital and the
Digital Escrow Agent to record beneficial ownership of such the number of
Escrowed Shares set forth next to the name of the Digital Member on Schedule I
hereto.  Such Digital Member shall execute and deliver to the Parties to the
Settlement Agreement and to the Escrow Agent an executed counterpart of this
Agreement and the Settlement Agreement together with a certificate stating that
(i) such Digital Member shall be bound by this Agreement and the Settlement
Agreement, (ii) as of the date of such beneficial transfer of record, the
representations set forth in Section 3.01 and Section 3.02 of the Settlement
Agreement are true and correct, and (iii) such Digital Member shall succeed to
the rights and obligations of Digital hereunder with respect to the Allocated
Retained Digital Escrowed Shares of such Digital Member.  Digital and any
Digital Member who so elects to have beneficial ownership of Retained Digital
Escrowed Shares recorded in such Digital Member's name are hereinafter each
referred to as a "Digital Investor Indemnitor" and collectively as the "Digital
                  ---------------------------                           -------
Investor Indemnitors."  Upon an election pursuant to this Section 1.03, a
--------------------
separate account shall be established for each Digital Investor Indemnitor and
shall contain the number of Escrowed Shares set forth next to the name of the
Digital Investor Indemnitor on Schedule I hereto (each an "Account").  The
                                                           -------
Escrow Agent shall maintain accurate and current balance information with regard
to each Account and shall maintain each Account separately.  The Escrow Fund
shall not be subject to lien or attachment by any creditor of any Party hereto
and shall be used solely for the purpose set forth in this Escrow Agreement.
Amounts held in the Escrow Fund shall not be available to, and shall not be used
by, the Escrow Agent to set off any obligations of any Party hereto owing to the
Escrow Agent in any capacity.

        Section 1.04  Investment of the Escrow Fund.  The Escrow Agent shall
                      -----------------------------
invest and reinvest all cash funds, if any, held from time to time as part of
the Escrow Fund, in its discretion, in demand or time deposits in, certificates
of deposit of or bankers' acceptances issued by a depository institution or
trust company incorporated under the laws of the United States of America, any
State thereof or the District of Columbia or such other investments as the
Parties shall approve in writing. If the Escrow Agent is so required to invest
the Escrow Fund, then the Escrow Agent shall invest all or any part of the
Escrow Fund in such a manner so as to distribute the Escrow Fund as provided
herein in immediately available funds, or, if the Escrow

                                      B-2
<PAGE>

Fund consists of securities, the Escrow Agent shall make such distributions by
transferring certificates representing such securities.

        Section 1.05  Sale of Escrowed Shares.  Promptly upon the Escrow
                      -----------------------
Agent's receipt of written instructions from any Digital Investor
Indemnitor to sell a specified number of Escrowed Shares, the Escrow Agent shall
execute the sale requested by such instructions; provided, however, that the
                                                 --------- --------
Escrow Agent shall not in a single sale or series of sales, sell a number of
Escrowed Shares on behalf of a Digital Investor Indemnitor that is greater than
the number of Escrowed Shares in the Account of such Digital Investor
Indemnitor, and provided further, that the proceeds of any sale pursuant to this
                -------- --------
Section 1.05 shall immediately become part of such Account.

        Section 1.06  Notice.  Upon the Escrow Agent's receipt of any notice
                      ------
or certificate provided for in this Escrow Agreement, the Escrow Agent shall
promptly provide a copy of such notice or certificate to each Party.

                                  ARTICLE II

                        DISTRIBUTION OF THE ESCROW FUND

        Section 2.01  Claim, Objection and Resolution Certificates.
                      --------------------------------------------

        (a)  The Escrow Agent shall distribute to each of the Digital Investor
Indemnitors the portion of the Escrow Fund in the Account held for such Digital
Investor Indemnitor, on the sixth day after the "Digital Escrow Termination
Date" (as hereinafter defined) (subject to delays in delivering stock
certificates not caused by the Escrow Agent), unless the Escrow Agent
                                              ------
has received during the period commencing on the Digital Escrow Termination Date
and ending at 5:00 pm, New York City Time on the date which is five (5) business
days following the Digital Escrow Termination Date, a certificate signed by the
Secretary of Tritel (i) stating that Tritel has provided the Digital Investor
Indemnitors with notice pursuant to Section 2.03(b) of the Settlement Agreement,
and (ii) setting forth the dollar amount to which Tritel claims Tritel is
entitled (a "Claim Certificate"). As used herein, the "Digital Escrow
             -----------------
Termination Date" shall mean the earlier to occur of (x) the date the Digital
Investor Indemnitors and Tritel definitively agree in writing that all the
matters related to the Digital Indemnity Obligation have been dismissed, settled
or otherwise finally disposed of; or (y) October 15, 2001.

        (b)  If Tritel has timely provided a Claim Certificate, on the eleventh
business day following the Escrow Agent's receipt of such Claim Certificate
(subject to delays in delivering stock certificates not caused by the Escrow
Agent), the Escrow Agent shall (i) distribute to Tritel from the Escrow Fund by
deducting from the Account of each Digital Investor Indemnitor such Digital
Investor Indemnitor's pro rata share of such distribution (x) the dollar amount
set forth in the Claim Certificate, or, in the event that an Account does not
contain sufficient cash, (y) the number of Escrowed Shares which if sold at the
Market Price (as hereinafter defined), would equal the dollar amount set forth
in the Claim Certificate after deducting the cost of commissions for such sale,
rounded up to the nearest whole TeleCorp Share, and (ii) shall distribute to
each Digital Investor Indemnitor the remaining balance in the

                                      B-3
<PAGE>

Account of such Digital Investor Indemnitor; provided, however, that
                                             --------  -------
notwithstanding the foregoing, the Escrow Agent shall not make such distribution
to Tritel pursuant to (i) above from the Account of any Digital Investor
Indemnitor which on or prior to the tenth business day following the Escrow
Agent's receipt of a Claim Certificate provides the Escrow Agent with a
certificate stating that such Digital Investor Indemnitor has provided Tritel
with notice pursuant to Section 2.03(c) of the Settlement Agreement (an
"Objection Certificate"). For purposes of this Section 2.01, "Market Price"
 ---------------------
means the average of the closing prices for TeleCorp Shares for the ten
consecutive trading days commencing 15 days before the date on which payment is
made.

        (c)  Notwithstanding any provision in this Escrow Agreement to the
contrary, upon the Escrow Agent's receipt, at any time, of a certificate signed
by all of the other Parties hereto (i) stating that all indemnifiable matters
pursuant to the License Purchase Agreement have been resolved, and (ii) setting
forth instructions for the distribution of the Escrow Fund (a "Resolution
                                                               ----------
Certificate"), the Escrow Agent shall promptly distribute the Escrow Fund in
-----------
accordance with the instructions contained in such certificate and this Escrow
Agreement shall terminate.

        (d)  In the event any Digital Investor Indemnitor timely provides an
Objection Certificate, the Escrow Agent shall retain in escrow the portion of
the Escrow Fund in the Account of such Digital Investor Indemnitor(s) until the
Escrow Agent receives (i) a Resolution Certificate, or (ii) instructions for the
distribution of the Escrow Fund from a three member panel certifying that it is
the board of arbitration that has been selected pursuant to ARTICLE IV of the
Settlement Agreement, in which case the Escrow Agent shall promptly comply with
such instructions.

                                  ARTICLE III

                                  TERMINATION

        Section 3.01  Termination.  This Escrow Agreement and the Escrow Agent's
                      -----------
obligations hereunder shall terminate upon a distribution of the entire Escrow
Fund made pursuant to Section 2.01 of this Escrow Agreement.

                                  ARTICLE IV

                                THE ESCROW AGENT

        Section 4.01  Duties and Obligations of the Escrow Agent. The duties and
                      ------------------------------------------
obligations of the Escrow Agent shall be limited to, and determined solely by,
the provisions of this Escrow Agreement and the notices delivered in accordance
herewith, and other than as provided herein with regard to references to the
Agreement, the Escrow Agent is not charged with knowledge of, or any duties or
responsibilities in respect of, any other agreement or document. In furtherance
and not in limitation of the foregoing:

        (i)    the Escrow Agent shall not be liable for any loss of interest
     sustained as a result of investments made hereunder, if any, in accordance
     with the terms hereof,

                                      B-4
<PAGE>

     including any liquidation of any investment of the Escrow Fund prior to its
     maturity effected in order to make a payment required by the terms of this
     Escrow Agreement;

        (ii)   the Escrow Agent shall be fully protected in relying in good
     faith upon any written certification, notice, direction, request, waiver,
     consent, receipt or other document that the Escrow Agent reasonably
     believes to be genuine and duly authorized, executed and delivered;

        (iii)  the Escrow Agent shall not be liable for any error of judgment,
     or for any act done or omitted by it, or for any mistake in fact or law, or
     for anything that it may do or refrain from doing in connection herewith;
     provided, however, that notwithstanding any other provision in this Escrow
     --------  -------
     Agreement, the Escrow Agent shall be liable for its willful misconduct,
     bad faith or gross negligence or breach of this Escrow Agreement;

        (iv)   the Escrow Agent may seek the advice of legal counsel selected
     with reasonable care in the event of any dispute or question as to the
     construction of any of the provisions of this Escrow Agreement or its
     duties hereunder, and it shall incur no liability and shall be fully
     protected in respect of any action taken, omitted or suffered by it in good
     faith in accordance with the opinion of such counsel;

        (v)    in the event that the Escrow Agent shall in any instance, after
     seeking the advice of legal counsel pursuant to the immediately preceding
     clause, in good faith be uncertain as to its duties or rights hereunder, it
     shall be entitled to refrain from taking any action in that instance and
     its sole obligation, in addition to those of its duties hereunder as to
     which there is no such uncertainty, shall be to keep safely all property
     held in the Escrow Fund until it shall be directed otherwise in a
     Resolution Certificate or by a final arbitration decision or award issued
     pursuant to Article IV of the Agreement; provided, however, that in the
                                              --------  -------
     event that the Escrow Agent has not received such written direction or
     arbitration decision or award within one hundred eighty (180) calendar days
     after requesting the same, it shall have the right to interplead Tritel and
     the Digital Investor Indemnitors in an arbitration proceeding to be
     conducted in accordance with Article IV of the Agreement;

        (vi)   the Escrow Agent may execute any of its powers or
     responsibilities hereunder and exercise any rights hereunder either
     directly or by or through agents or attorneys selected with reasonable
     care;

        (vii)  nothing in this Escrow Agreement shall be deemed to impose upon
     the Escrow Agent any duty to qualify to do business or to act as a
     fiduciary or otherwise in any jurisdiction other than the state of New
     York; and

        (viii) the Escrow Agent shall not be responsible for and shall not be
     under a duty to examine or pass upon the validity, binding effect,
     execution or sufficiency of this Escrow Agreement or of any agreement
     amendatory or supplemental hereto.

        Section 4.02  Cooperation.  Tritel and the Digital Investor
                      -----------
Indemnitors shall provide to the Escrow Agent all instruments and documents
within their respective powers to

                                      B-5
<PAGE>

provide that are necessary for the Escrow Agent to perform the Escrow Agent's
duties and responsibilities hereunder.

        Section 4.03  Fees and Expenses; Indemnity.  The Escrow Agent shall be
                      ----------------------------
entitled to receive a monthly fee of $175 for each full month that the
Escrow Agent serves as the Escrow Agent under this Agreement.  Such fee shall be
payable semi-annually with the first payment payable on the date hereof. Such
first payment shall be non-refundable, regardless of the date on which this
Escrow Agreement terminates. Tritel shall pay half of such fee and the Digital
Investor Indemnitors shall each pay an equal portion of the remaining half of
such fee.  Tritel and the Digital Investor Indemnitors shall reimburse and
indemnify the Escrow Agent for, and hold it harmless against, any loss, damages,
cost or expense, including but not limited to reasonable attorneys' fees,
reasonably incurred by the Escrow Agent in connection with the Escrow Agent's
performance of its duties and obligations under this Escrow Agreement, as well
as the reasonable costs and expenses of defending against any claim or liability
relating to this Escrow Agreement; provided, however, that notwithstanding the
                                   --------  -------
foregoing, Tritel and the Digital Investor Indemnitors shall not be required to
indemnify the Escrow Agent for any such loss, liability, cost or expense arising
as a result of the Escrow Agent's willful misconduct, bad faith or gross
negligence or breach of this Escrow Agreement.

        Section 4.04  Resignation and Removal of the Escrow Agent. The Escrow
                      -------------------------------------------
Agent may resign upon thirty (30) days' prior written notice to Tritel and the
Digital Investor Indemnitors. In addition, the Escrow Agent may be removed and
replaced on a date designated in a written instrument jointly signed by Tritel
and the Digital Investor Indemnitors and delivered to the Escrow Agent.
Notwithstanding the foregoing, no such resignation or removal shall be effective
until a successor escrow agent has acknowledged its appointment as such as
provided in paragraph (b) below. In either event, upon the effective date of
such resignation or removal, the Escrow Agent shall deliver the property
comprising the Escrow Fund to such successor escrow agent, together with such
records maintained by the Escrow Agent in connection with its duties hereunder
and other information with respect to the Escrow Fund as such successor may
reasonably request.

        (a)  If a successor escrow agent shall not have acknowledged its
appointment as such as provided in paragraph (b) below, in the case of a
resignation, prior to the expiration of thirty (30) calendar days following the
date of a notice of resignation or, in the case of a removal, on the date
designated for the Escrow Agent's removal, as the case may be, because Tritel
and the Digital Investor Indemnitors are unable to agree on a successor escrow
agent, or for any other reason, the Escrow Agent may select a successor escrow
agent and any such resulting appointment shall be binding upon all of the
parties to this Escrow Agreement.

        (b)  Upon written acknowledgment by a successor escrow agent appointed
in accordance with the foregoing provisions of this Section 4.04 of its
agreement to serve as escrow agent hereunder and the receipt of the property
then comprising the Escrow Fund, the Escrow Agent shall be fully released and
relieved of all duties, responsibilities and obligations under this Escrow
Agreement, except as otherwise provided herein, and such successor escrow agent
shall for all purposes hereof be the Escrow Agent.

                                      B-6
<PAGE>

                                   ARTICLE V

                                 MISCELLANEOUS

        Section 5.01  Amendment.  This Escrow Agreement may be amended,
                      ---------
supplemented or modified only by a written instrument duly executed by or on
behalf of each Party hereto.

        Section 5.02  Counterparts.  This Escrow Agreement may be executed in
                      ------------
any number of counterparts, each of which will be deemed an original, but all of
which, when executed and delivered to and by each Party, together will
constitute one and the same instrument.

        Section 5.03  GOVERNING LAW; JURISDICTION.  THIS ESCROW AGREEMENT SHALL
                      ---------------------------
BE DEEMED TO HAVE BEEN CONSUMMATED IN NEW YORK COUNTY, IN THE STATE OF NEW YORK.
ALL DISPUTES AND PROCEEDINGS BY AND BETWEEN THE PARTIES WILL BE SOLELY GOVERNED,
CONSTRUED AND ENFORCED IN ACCORDANCE WITH THE INTERNAL LAW OF THE STATE OF NEW
YORK WITHOUT REGARD TO ITS CONFLICTS AND CHOICE OF LAW RULES. THE PARTIES AND
THE ESCROW AGENT AGREE THAT ANY CONTROVERSY, CLAIM OR DISPUTE ARISING OUT OF OR
RELATING TO THIS ESCROW AGREEMENT, OR THE CONSTRUCTION, INTERPRETATION,
PERFORMANCE, BREACH, TERMINATION, ENFORCEABILITY OR VALIDITY OF THE ESCROW
AGREEMENTS OR THE ARBITRATION PROVISIONS CONTAINED THEREIN, INCLUDING WITHOUT
LIMITATION THE DETERMINATION OF THE SCOPE OF THIS ESCROW AGREEMENT TO ARBITRATE,
SHALL BE DETERMINED BY ARBITRATION IN ACCORDANCE WITH THE ARBITRATION PROVISION
SET FORTH IN ARTICLE IV OF THE AGREEMENT.

        Section 5.04  Headings.  The headings used in this Escrow Agreement
                      --------
have been inserted for convenience of reference only and do not define or limit
the provisions hereof.

        Section 5.05  Invalid Provisions.  If any provision of this Escrow
                      ------------------
Agreement is held to be illegal, invalid or unenforceable under any applicable
present or future law, and if the rights or obligations of any party hereto
under this Escrow Agreement will not be materially and adversely affected
thereby, (i) such provision will be fully severable, (ii) this Escrow Agreement
will be construed and enforced as if such illegal, invalid or unenforceable
provision had never comprised a part hereof, (iii) the remaining provisions of
this Escrow Agreement will remain in full force and effect and will not be
affected by the illegal, invalid or unenforceable provision or by its severance
herefrom and (iv) in lieu of such illegal, invalid or unenforceable provision,
there will be added automatically as a part of this Escrow Agreement a legal,
valid and enforceable provision as similar in terms to such illegal, invalid or
unenforceable provision as may be possible.

        Section 5.06  No Assignment; Binding Effect.  Neither this Escrow
                      -----------------------------
Agreement nor any right, interest or obligation hereunder may be assigned
by any Party without the prior

                                      B-7
<PAGE>

written consent of each party hereto and any attempt to do so will be void,
except for assignments and transfers by operation of law. Subject to the
preceding sentence, this Escrow Agreement is binding upon, inures to the benefit
of and is enforceable by the Parties hereto and their respective successors and
assigns.

        Section 5.07  Notices.  All notices, requests and other communications
                      -------
required to be sent hereunder must be in writing and will be deemed to have been
duly given only if delivered personally or by confirmed facsimile transmission
or mailed (postage prepaid, certified or registered, return receipt requested)
to the Parties at the following addresses or facsimile numbers:

          If to Tritel to:

                Tritel, Inc.
                111 E. Capitol Street
                Suite 500
                Jackson Mississippi 39201
                P.O. Box 23033
                Jackson, MS 39225-3033
                Facsimile No.:  (601) 914-8285
                Attn:  General Counsel

          with copies to:

                TeleCorp PCS, Inc.
                1010 N. Glebe Road
                Arlington, VA 22201
                Attn:  Chief Financial Officer
                Facsimile No.:  (203) 236-1376

                and

                Cadwalader, Wickersham & Taft
                100 Maiden Lane
                New York, NY  10038
                Facsimile No.:  (212) 504-6666
                Attn:  Brian Hoffmann, Esq.

          If to Digital, to:

                Digital PCS, LLC
                c/o Southern Farm Bureau Life Insurance Company
                1401 Livingston Lane
                Jackson, MS  39205
                Facsimile No.:  (601) 321-2667
                Attn:  Joseph A. Purvis

                                      B-8
<PAGE>

          with a copy to:

                Young, Williams, Henderson, & Fuselier P.A.
                210 East Capitol Street
                Suite 2000
                Jackson, MS  39201
                P.O. Box 23059
                Jackson, MS  39225
                Facsimile No.:  (601) 355-6136
                Attn:  Don Goode

          If to Escrow Agent, to:

                Firstar Bank, N.A.
                Corporate Trust Department
                101 East Fifth Street
                St. Paul, MN  55101
                Facsimile No.:  (651) 229-6415
                Attn:  Frank Leslie

All such notices, requests and other communications will (i) if delivered
personally to the address as provided in this Section 5.07, be deemed given upon
delivery, (ii) if delivered by facsimile transmission to the facsimile number as
provided in this Section 5.07, be deemed given upon confirmation of receipt, and
(iii) if delivered by mail in the manner described above to the address as
provided in this Section 5.07, be deemed given upon receipt (in each case
regardless of whether such notice, request or other communication is received by
any other person to whom a copy of such notice is to be delivered pursuant to
this Section 5.07).  Any Party from time to time may change its address,
facsimile number or other information for the purpose of notices to that Party
by giving notice specifying such change to the other Party hereto in the manner
set forth herein.

        Section 5.08  No Third Party Beneficiary.  The terms and provisions of
                      --------------------------
this Escrow Agreement are intended solely for the benefit of the Parties and
their respective successors or permitted assigns, and it is not the intention of
the Parties to confer third-party beneficiary rights upon any other person.

        Section 5.09  Waiver.  Any term or condition of this Escrow Agreement
                      ------
may be waived at any time by the party that is entitled to the benefit thereof,
but no such waiver shall be effective unless expressly set forth in a written
instrument duly executed by or on behalf of the Party waiving such term or
condition. No waiver by any Party of any term or condition of this Escrow
Agreement, in any one or more instances, shall be deemed to be or construed as a
waiver of the same or any other term or condition of this Escrow Agreement on
any future occasion. All remedies, either under this Escrow Agreement or by law
or otherwise afforded, will be cumulative and not alternative.

                                      B-9
<PAGE>

          IN WITNESS WHEREOF, the parties hereto have caused this Escrow
Agreement to be executed as of the date first above written.

                                 Tritel, Inc.

                                 By:
                                    ---------------------------------
                                 Name:
                                      -------------------------------
                                 Title:
                                       ------------------------------
                                 Digital PCS, LLC

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

                                 Firstar Bank N.A., as Escrow Agent

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

                                      B-10
<PAGE>

                            Schedule I to Exhibit B

              Digital Members and Retained Digital Escrowed Shares
              ----------------------------------------------------

<TABLE>
<CAPTION>
Name                            Tritel Shares Beneficially Held     = Number of TeleCorp Shares
                                                                    Beneficially Held
-------------------------------------------------------------------------------------------------
<S>                             <C>                               <C>
Mercury PCS Investors, LLC                                42,043                           31,952
-------------------------------------------------------------------------------------------------
Clayton Associates, LLC                                      420                              319
-------------------------------------------------------------------------------------------------
M3, LLC                                                   23,418                           17,798
-------------------------------------------------------------------------------------------------
McCarty Communications, LLC                               16,817                           12,781
-------------------------------------------------------------------------------------------------
DC Investment Partners                                     4,205                            3,195
 Exchange Fund, L.P.
-------------------------------------------------------------------------------------------------
FCA Venture Partners I, L.P.                               2,102                            1,598
-------------------------------------------------------------------------------------------------
Southern Farm Bureau                                     126,717                           96,304
-------------------------------------------------------------------------------------------------
E.B. Martin, Jr.                                          12,689                            9,644
-------------------------------------------------------------------------------------------------
Jerry M. Sullivan, Jr.                                    12,689                            9,644
-------------------------------------------------------------------------------------------------
William M. Mounger, II                                    12,689                            9,644
-------------------------------------------------------------------------------------------------
Total                                                    253,789                          192,879
-------------------------------------------------------------------------------------------------
</TABLE>

                                      B-11
<PAGE>

                                   Exhibit C

                                  Tritel, Inc.
                             111 E. Capitol Street
                                   Suite 500
                           Jackson Mississippi 39201

                                 March___, 2001

Trustmark National Bank, N.A.
248 East Capitol
Jackson, Mississippi 39201
Attn:  W. Sanders Carter, Jr.

Dear Mr. Carter:

     This letter shall serve to notify you under that certain Collateral Agency
Agreement dated as of January 7, 1999, among Trustmark National Bank, N.A.,
Tritel, Inc. ("Tritel") and Ericsson Inc. ("Ericsson") as amended by that
certain First Amendment to Collateral Agency Agreement dated the ___ day of
_______________, 2001 (the "Collateral Agency Amendment"), that a dispute has
arisen and is continuing in respect of an indemnification obligation of Airwave
Communications, LLC ("Airwave") to Tritel pursuant to the Securities Purchase
Agreement.  Tritel and the members of Airwave (the "Airwave Investor
Indemnitors") have entered into a settlement agreement dated as of the ___ day
of _________________ (the "Settlement Agreement") under the terms of which
1,246,211 shares of Tritel Class A common stock (947,120 shares of TeleCorp PCS,
Inc. Class A voting common stock ("TeleCorp Shares")) shall be delivered to
Firstar Bank, N.A. (the "New Escrow Agent") to hold in a new escrow in favor of
Tritel.

     Tritel hereby directs you to deliver instructions to the appropriate
transfer agent to cause the shares represented by the Tritel stock certificates
set forth on Schedule I hereto (the "Tritel Certificates") (i) to be converted
into TeleCorp Shares and to be reissued in the names of the Old Mercury
Stockholders or their designees as set forth on, and in the denominations
specified in, Schedule II hereto and (ii) to have the new stock certificates
representing such TeleCorp Shares (the "New Certificates") returned to you.

     Tritel further directs you to promptly, and in any event within five (5)
days after your receipt of the New Certificates from the transfer agent, (i)
distribute the New Certificates representing the shares described in Part A of
Schedule II hereto to Charles W. Ferguson at 4268 I-55 North, Meadowbrook Office
Park, Jackson, Mississippi 39211; (ii) distribute the New Certificates
representing the shares described in Part B of Schedule II hereto to Firstar
Bank, N.A., Corporate Trust Department, at 101 East Fifth Street St. Paul, MN
55101 Attn: Frank Leslie; and (iii) provide written notice to Ericsson that you
have delivered the New Certificates to Firstar Bank, N.A. and Charles W.
Ferguson.

                                      C-1
<PAGE>

     The undersigned officer of Tritel hereby certifies that the statements
contained herein are true and correct as of the date hereof.  Terms used herein
and not defined shall have the specific meanings set forth in the Collateral
Agency Agreement.

                                    Tritel, Inc.

                                    By:_________________________________

                                    Printed Name:________________________

                                    Title:_______________________________

                                      C-2
<PAGE>

                            SCHEDULE I TO EXHIBIT C

<TABLE>
<CAPTION>
Shareholder                                        Certificate #    Class       #of Tritel Shares
-----------                                        -------------    -----       -----------------
<S>                                               <C>               <C>        <C>
Clayton Associates, LLC                           TA0181            A                    14,164.15
Clayton Associates, LLC                           TD18              D                       958.34
DC Investment Partners Exchange Fund, LP          TA0188            A                   141,706.77
DC Investment Partners Exchange Fund, LP          TD27              D                     9,587.82
FCA Venture Partners I, LP                        TA0198            A                    70,849.40
FCA Venture Partners I, LP                        TD29              D                     4,793.64
M3, LLC                                           TA0184            A                   789,293.33
M3, LLC                                           TD23              D                    53,403.25
McCarty Communications, LLC                       TA0186            A                   566,815.01
McCarty Communications, LLC                       TD25              D                    38,350.46
Mercury PCS Investors, LLC                        TA0193            A                 1,417,043.57
Mercury PCS Investors, LLC                        TD31              D                    95,876.57
Southern Farm Bureau                              TA0192            A                 4,270,971.01
Southern Farm Bureau                              TD21              D                   288,972.09
</TABLE>

                                      C-3
<PAGE>

                            SCHEDULE II TO EXHIBIT C

<TABLE>
<CAPTION>
                                                     TeleCorp                   TeleCorp
                                                  Class A Common             Class F Common
                                           ------------------------------------------------------
<S>                                          <C>                       <C>
PART A
------
Shares to be Delivered  to Charles W.
Ferguson
--------
Southern Farm Bureau Life Insurance Co.                     2,907,011                       2,196
M3, LLC                                                           ---                         405
Bear Stearns Security Corp.                                   537,226                         ---
McCarty Communications, LLC                                   385,797                         291
DC Investment Partners Exchange Fund, LP                       96,452                          72
FCA Venture Partners I, LP                                     48,222                          36
Clayton Associates, LLC                                         9,641                           7
Mercury PCS Investors, LLC                                        ---                         728
Bear Stearns Security Corp.                                   964,501                         ---
                                           ------------------------------------------------------
                                                            4,948,850                       3,735
PART B
------
Shares to be Delivered to New Escrow Agent
------------------------------------------
Southern Farm Bureau Life Insurance Co.                       556,348
M3, LLC                                                       102,816
McCarty Communications, LLC                                    73,836
DC Investment Partners Exchange Fund, LP                       18,458
FCA Venture Partners I, LP                                      9,229
Clayton Associates, LLC                                         1,844
Mercury PCS Investors, LLC                                    184,589
                                           --------------------------
                                                              947,120
</TABLE>

                                      C-4
<PAGE>

                                   Exhibit D

                                                            March ___, 2001

James H. Neeld, IV
Secretary
Tritel, Inc.
111 E. Capitol Street, Suite 500
Jackson, MS 39201

Dear Mr. Neeld:

You are currently holding securities issued in the name of Digital PCS, LLC
("Digital") as security for certain indemnification obligations of Digital under
the terms of that certain License Purchase Agreement (the "License Purchase
Agreement") dated May 20, 1999 between Digital, William Mounger, II, E. B.
Martin, Jr. and Jerry M. Sullivan, Jr. and Tritel, Inc. ("Tritel").

This shall serve to notify you that a dispute has arisen and is continuing
between Digital and Tritel in respect of the indemnification obligations of
Digital under the License Purchase Agreement.  Tritel and Digital have entered
into a Settlement Agreement dated as of the __ day of March, 2001, (the
"Settlement Agreement") under the terms of which 253,789 shares of Tritel Class
A Common Stock (192,879 shares of TeleCorp PCS, Inc. ("TeleCorp") Class A Voting
Common Stock ("TeleCorp Shares")) shall be delivered to Firstar Bank, N.A. to
hold in a new escrow in favor of Tritel.

Tritel hereby directs you to deliver instructions to the appropriate transfer
agent to cause the shares represented by the Tritel stock certificates set forth
on Schedule I hereto (the "Tritel Certificates") (i) to be converted into
TeleCorp Shares and to be reissued in the names of the Old Mercury Stockholders
or their designees as set forth on, and in the denominations specified in,
Schedule II hereto and (ii) to have the new stock certificates representing such
TeleCorp Shares (the "New Certificates") returned to you.

Tritel further directs you to promptly, and in any event within five (5) days
after your receipt of the New Certificates from the transfer agent, (i)
distribute the New Certificates representing the shares described in Part A of
Schedule II hereto to Charles W. Ferguson at 4268 I-55 North, Meadowbrook Office
Park, Jackson, Mississippi 39211; and (ii) distribute the New Certificates
representing the shares described in Part B of Schedule II hereto to Firstar
Bank, N.A., Corporate Trust Department, at 101 East Fifth Street St. Paul, MN
55101 Attn: Frank Leslie.

                                      D-1
<PAGE>

The undersigned officer or representative of Tritel and Digital hereby certify
that the statements contained herein are true and correct as of the date hereof.

Digital PCS, LLC  Tritel, Inc.

By:_________________________________    By:_________________________________

Printed Name:________________________    Printed Name:________________________

Title:_______________________________    Title:_______________________________

                                      D-2
<PAGE>

                            SCHEDULE I TO EXHIBIT D

<TABLE>
<CAPTION>

                                                                                           # Shares
                                                                                           --------
<S>                                                                                        <C>
Retire to Treasury                                                                          142,745
Jerry M. Sullivan, Jr.                                                                       29,601
William M. Mounger, II                                                                       29,601
E. B. Martin, Jr.                                                                            29,601
Southern Farm Bureau Life Insurance Company                                                 413,142
M3, LLC                                                                                      75,563
McCarty Communications, LLC                                                                  54,830
DC Investment Partners Exchange Fund, L.P.                                                   13,567
FCA Venture Partners I, L.P.                                                                  6,782
Clayton Associates, LLC                                                                       1,357
Mercury PCS Investors, LLC                                                                  135,661
Jerry M. Sullivan, Jr.                                                                        9,644
William M. Mounger, II                                                                        9,644
E. B. Martin, Jr.                                                                             9,644
Southern Farm Bureau Life Insurance Company                                                  96,304
M3, LLC                                                                                      17,798
McCarty Communications, LLC                                                                  12,781
DC Investment Partners Exchange Fund, L.P.                                                    3,195
FCA Venture Partners, LLC                                                                     1,598
Clayton Associates, LLC                                                                         319
Mercury PCS Investors, LLC                                                                   31,952
                                                                                          ---------
  Total                                                                                   1,125,329
</TABLE>

                                      D-3
<PAGE>

                            SCHEDULE II TO EXHIBIT D

Part A
------
Shares to be Delivered c/o Charles Ferguson
-------------------------------------------

Jerry M. Sullivan, Jr.                                         29,601
William M. Mounger, II                                         29,601
E. B. Martin, Jr.                                              29,601
Southern Farm Bureau Life Insurance Company                   413,142
M3, LLC                                                        75,563
McCarty Communications, LLC                                    54,830
DC Investment Partners Exchange Fund, L.P.                     13,567
FCA Venture Partners I, L.P.                                    6,782
Clayton Associates, LLC                                         1,357
Mercury PCS Investors, LLC                                    135,661
                                                              -------
Total                                                         789,705

Part B
------
Shares to be Delivered to Firstar Bank, N.A., Corporate Trust Department
------------------------------------------------------------------------

Jerry M. Sullivan, Jr.                                    9,644
William M. Mounger, II                                    9,644
E. B. Martin, Jr.                                         9,644
Southern Farm Bureau Life Insurance Company              96,304
M3, LLC                                                  17,798
McCarty Communications, LLC                              12,781
DC Investment Partners Exchange Fund, L.P.                3,195
FCA Venture Partners I, L.P.                              1,598
Clayton Associates, LLC                                     319
Mercury PCS Investors, LLC                               31,952
                                                        -------
                                                        192,879
Total

                                      D-4
<PAGE>

                               EXECUTION COPIES
                                      of
                                   EXHIBITS

                                      D-5
<PAGE>

                                                                  Execution Copy

                            AIRWAVE ESCROW AGREEMENT

          This ESCROW AGREEMENT, dated as of March 12, 2001 is entered into by
and among Tritel, Inc., a Delaware corporation and wholly-owned subsidiary of
TeleCorp PCS, Inc. ("Tritel"), the entities set forth on Schedule I ( the
                     ------
"Airwave Investor Indemnitors") and Firstar Bank, N.A., having an address of 101
-----------------------------
East Fifth Street, St. Paul, MN 55101, as escrow agent (the "Escrow Agent")
                                                             ------------
(each of the foregoing a "Party" and collectively the "Parties").  Capitalized
                          -----                        -------
terms not otherwise defined herein shall have the meanings ascribed to them in
the Settlement Agreement (as defined herein) or the Securities Purchase
Agreement (as defined herein) as applicable.

          WHEREAS, Tritel and the Airwave Investor Indemnitors are parties to a
Settlement Agreement, dated as of the date hereof (the "Settlement Agreement");

          WHEREAS, Tritel and the Airwave Investor Indemnitors are parties to
the Securities Purchase Agreement dated as of May 20, 1998 (the "Securities
                                                                 ----------
Purchase Agreement");
------------------

          WHEREAS, Tritel became a wholly-owned subsidiary of TeleCorp PCS,
Inc., a Delaware corporation ("TeleCorp"), pursuant to a merger (the "Merger")
                               --------                               ------
that was consummated on November 13, 2000;

          WHEREAS, pursuant to the terms of the Merger, each share of Tritel
Class A Common Stock ("Tritel Shares") was converted, effective on the
                       -------------
Reconciliation Date, into 0.76 shares of TeleCorp Class A Voting Common Stock
("TeleCorp Shares");
-----------------

          WHEREAS, the Parties hereto wish to designate the Escrow Agent to
administer an escrow for the benefit of the Parties hereto on the terms and
subject to the conditions set forth in this Escrow Agreement;

          NOW, THEREFORE, in consideration of the mutual covenants and
agreements set forth in this Escrow Agreement, and for other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, the
Parties agree as follows:

                                   ARTICLE I

                              TERMS OF THE ESCROW

        Section 1.01  Appointment of the Escrow Agent; Deposit of Escrowed
                      ----------------------------------------------------
Shares.
------
Tritel and the Airwave Investor Indemnitors hereby constitute and appoint the
Escrow Agent as, and the Escrow Agent hereby agrees to assume and perform the
duties of, escrow agent under

                                       1
<PAGE>

and pursuant to this Escrow Agreement. The Parties shall arrange for the Escrow
Agent to receive 1,246,211 Tritel Shares, or in the event shares are delivered
in the form of TeleCorp Shares, 947,120 TeleCorp Shares (such shares and the
TeleCorp Shares into which they are converted being the "Escrowed Shares").
                                                         ---------------

        Section 1.02  Stock Certificates for Escrowed Shares.  In the event
                      --------------------------------------
the Escrow Agent receives the Escrowed Shares in the form of Tritel Shares, the
Escrow Agent shall, promptly following the receipt of such Tritel Shares, take
any and all action necessary to obtain stock certificates reflecting the
conversion, pursuant to the Merger, of the Tritel Shares that constitute
Escrowed Shares into TeleCorp Shares.

        Section 1.03  The Escrow Fund.  The Escrowed Shares, any cash resulting
                      ---------------
from the disposition of the Escrowed Shares pursuant to Section 1.05 herein, any
stock dividends paid on any Escrowed Shares, or any rights or securities into
which the Escrowed Shares are convertible or have been converted, and all
earnings on any of the foregoing (collectively, the "Escrow Fund") shall be held
                                                     -----------
by the Escrow Agent as a trust fund in separate accounts maintained for the
purpose, on the terms set forth in, and subject to the conditions of, this
Escrow Agreement. The Escrow Fund shall be divided into seven (7) accounts, each
of which shall be an account for a separate Airwave Investor Indemnitor and
which shall contain the number of Escrowed Shares set forth next to the name of
the Airwave Investor Indemnitor on Schedule I hereto (each an "Account"). The
                                                               -------
Escrow Agent shall maintain accurate and current balance information with regard
to each Account and shall maintain each Account separately. The Escrow Fund
shall not be subject to lien or attachment by any creditor of any party hereto
and shall be used solely for the purpose set forth in this Escrow Agreement.
Amounts held in the Escrow Fund shall not be available to, and shall not be used
by, the Escrow Agent to set off any obligations of any Party hereto owing to the
Escrow Agent in any capacity.

        Section 1.04  Investment of the Escrow Fund.  The Escrow Agent shall
                      -----------------------------
invest and reinvest all cash funds, if any, held from time to time as part of
the Escrow Fund, in its discretion, in demand or time deposits in, certificates
of deposit of or bankers' acceptances issued by a depository institution or
trust company incorporated under the laws of the United States of America, any
State thereof or the District of Columbia or such other investments as the
Parties shall approve in writing. If the Escrow Agent is so required to invest
the Escrow Fund, then the Escrow Agent shall invest all or any part of the
Escrow Fund in such a manner so as to distribute the Escrow Fund as provided
herein in immediately available funds, or, if the Escrow Fund consists of
securities, the Escrow Agent shall make such distributions by transferring
certificates representing such securities.

        Section 1.05  Sale of Escrowed Shares.  Promptly upon the Escrow Agent's
                      -----------------------
receipt of written instructions from any Airwave Investor Indemnitor to sell a
specified number of Escrowed Shares, the Escrow Agent shall execute the sale
requested by such instructions; provided, however, that the Escrow Agent shall
                                --------- --------
not in a single sale or series of sales, sell a number of Escrowed Shares on
behalf of an Airwave Investor Indemnitor that is greater than the number of
Escrowed Shares in the Account of such Airwave Investor Indemnitor, and provided
                                                                        --------
further, that the proceeds of any sale pursuant to this Section 1.05 shall
--------
immediately become part of such Account.

                                       2
<PAGE>

        Section 1.06  Notice.  Upon the Escrow Agent's receipt of any notice
                      ------
or certificate provided for in this Escrow Agreement, the Escrow Agent shall
promptly provide a copy of such notice or certificate to each Party.

                                  ARTICLE II

                        DISTRIBUTION OF THE ESCROW FUND

        Section 2.01  Claim, Objection and Resolution Certificates.
                      --------------------------------------------

        (a)  The Escrow Agent shall distribute to each of the Airwave Investor
Indemnitors the portion of the Escrow Fund in the Account held for such Airwave
Investor Indemnitor, on the sixth day after the "Airwave Escrow Termination
Date" (as hereinafter defined) (subject to delays in delivering stock
certificates not caused by the Escrow Agent), unless the Escrow Agent has
                                              ------
received during the period commencing on the Airwave Escrow Termination Date and
ending at 5:00 pm, New York City Time on the date which is five (5) business
days following the Airwave Escrow Termination Date, a certificate signed by the
Secretary of Tritel (i) stating that Tritel has provided the Airwave Investor
Indemnitors with notice pursuant to Section 2.02(a) of the Settlement Agreement,
and (ii) setting forth the dollar amount to which Tritel claims Tritel is
entitled (a "Claim Certificate"). As used herein, the "Airwave Escrow
             -----------------
Termination Date" shall mean the earlier to occur of (x) the date the Airwave
Investor Indemnitors and Tritel definitively agree in writing that all the
matters related to the Airwave Indemnity Obligation have been dismissed, settled
or otherwise finally disposed of; or (y) October 15, 2001.

        (b)  If Tritel has timely provided a Claim Certificate, on the eleventh
business day following the Escrow Agent's receipt of such Claim Certificate
(subject to delays in delivering stock certificates not caused by the Escrow
Agent), the Escrow Agent shall (i) distribute to Tritel from the Escrow Fund by
deducting from the Account of each Airwave Investor Indemnitor such Airwave
Investor Indemnitor's pro rata share of such distribution (x) the dollar amount
set forth in the Claim Certificate, or, in the event that an Account does not
contain sufficient cash, (y) the number of Escrowed Shares which if sold at the
"Market Price" (as hereinafter defined), would equal the dollar amount set forth
in the Claim Certificate after deducting the cost of commissions for such sale,
rounded up to the nearest whole TeleCorp Share, and (ii) shall distribute to
each Airwave Investor Indemnitor the remaining balance in the Account of such
Airwave Investor Indemnitor; provided, however, that notwithstanding the
                             --------  --------
shall not make such distribution to Tritel pursuant to (i) above from the
Account of any Airwave Investor Indemnitor which on or prior to the tenth
business day following the Escrow Agent's receipt of a Claim Certificate
provides the Escrow Agent with a certificate stating that such Airwave Investor
Indemnitor has provided Tritel with notice pursuant to Section 2.02(b) of the
Settlement Agreement (an "Objection Certificate"). For purposes of this Section
                          ---------------------
2.01, "Market Price" means the average of the closing prices for TeleCorp Shares
for the ten consecutive trading days commencing 15 days before the date on which
payment is made.

        (c)  Notwithstanding any provision in this Escrow Agreement, upon the
Escrow Agent's receipt, at any time, of a certificate signed by the other
Parties hereto (i) stating

                                       3
<PAGE>

that all indemnifiable matters pursuant to the Securities Purchase Agreement
have been resolved, and (ii) setting forth instructions for the distribution of
the Escrow Fund (a "Resolution Certificate"), the Escrow Agent shall promptly
                    ---------- -----------
distribute the Escrow Fund in accordance with the instructions contained in such
certificate and this Escrow Agreement shall terminate.

        (d)  In the event any Airwave Investor Indemnitor timely provides an
Objection Certificate, the Escrow Agent shall retain in escrow the portion of
the Escrow Fund in the Account of such Airwave Investor Indemnitor(s) until the
Escrow Agent receives (i) a Resolution Certificate, or (ii) instructions for the
distribution of the Escrow Fund from a three member panel certifying that it is
the board of arbitration that has been selected pursuant to ARTICLE IV of the
Settlement Agreement, in which case the Escrow Agent shall promptly comply with
such instructions.

                                  ARTICLE III

                                  TERMINATION

        Section 3.01  Termination.  This Escrow Agreement and the Escrow Agent's
                      -----------
obligations hereunder shall terminate upon a distribution of the Entire Escrow
Fund made pursuant to Section 2.01 of this Escrow Agreement.

                                  ARTICLE IV

                                THE ESCROW AGENT

        Section 4.01  Duties and Obligations of the Escrow Agent.  The duties
                      ------------------------------------------
and obligations of the Escrow Agent shall be limited to, and determined solely
by, the provisions of this Escrow Agreement and the notices delivered in
accordance herewith, and other than as provided herein with regard to references
to the Agreement, the Escrow Agent is not charged with knowledge of, or any
duties or responsibilities in respect of, any other agreement or document. In
furtherance and not in limitation of the foregoing:

        (i)    the Escrow Agent shall not be liable for any loss of interest
     sustained as a result of investments made hereunder, if any, in accordance
     with the terms hereof, including any liquidation of any investment of the
     Escrow Fund prior to its maturity effected in order to make a payment
     required by the terms of this Escrow Agreement;

        (ii)   the Escrow Agent shall be fully protected in relying in good
     faith upon any written certification, notice, direction, request, waiver,
     consent, receipt or other document that the Escrow Agent reasonably
     believes to be genuine and duly authorized, executed and delivered;

        (iii)  the Escrow Agent shall not be liable for any error of judgment,
     or for any act done or omitted by it, or for any mistake in fact or law, or
     for anything that it may do or refrain from doing in connection herewith;
     provided, however, that notwithstanding any other provision in this
     --------  -------
     Escrow Agreement, the Escrow Agent shall be liable for its willful
     misconduct, bad faith or gross negligence or breach of this Escrow
     Agreement;

                                       4
<PAGE>

        (iv)   the Escrow Agent may seek the advice of legal counsel selected
     with reasonable care in the event of any dispute or question as to the
     construction of any of the provisions of this Escrow Agreement or its
     duties hereunder, and it shall incur no liability and shall be fully
     protected in respect of any action taken, omitted or suffered by it in good
     faith in accordance with the opinion of such counsel;

        (v)    in the event that the Escrow Agent shall in any instance, after
     seeking the advice of legal counsel pursuant to the immediately preceding
     clause, in good faith be uncertain as to its duties or rights hereunder, it
     shall be entitled to refrain from taking any action in that instance and
     its sole obligation, in addition to those of its duties hereunder as to
     which there is no such uncertainty, shall be to keep safely all property
     held in the Escrow Fund until it shall be directed otherwise in a
     Resolution Certificate or by a final arbitration decision or award issued
     pursuant to Article IV of the Agreement; provided, however, that in the
                                              --------  -------
     event that the Escrow Agent has not received such written direction or
     arbitration decision or award within one hundred eighty (180) calendar days
     after requesting the same, it shall have the right to interplead Tritel and
     the Airwave Investor Indemnitors in an arbitration proceeding to be
     conducted in accordance with Article IV of the Agreement;

        (vi)   the Escrow Agent may execute any of its powers or
     responsibilities hereunder and exercise any rights hereunder either
     directly or by or through agents or attorneys selected with reasonable
     care;

        (vii)  nothing in this Escrow Agreement shall be deemed to impose upon
     the Escrow Agent any duty to qualify to do business or to act as a
     fiduciary or otherwise in any jurisdiction other than the state of New
     York; and

        (viii) the Escrow Agent shall not be responsible for and shall not be
     under a duty to examine or pass upon the validity, binding effect,
     execution or sufficiency of this Escrow Agreement or of any agreement
     amendatory or supplemental hereto.

        Section 4.02  Cooperation.  Tritel and the Airwave Investor Indemnitors
                      -----------
shall provide to the Escrow Agent all instruments and documents within their
respective powers to provide that are necessary for the Escrow Agent to perform
the Escrow Agent's duties and responsibilities hereunder.

        Section 4.03  Fees and Expenses; Indemnity.  The Escrow Agent shall be
                      ----------------------------
entitled to receive a monthly fee of $175 for each full month that the Escrow
Agent serves as the Escrow Agent under this Agreement. Such fee shall be payable
semi-annually with the first payment payable on the date hereof. Such first
payment shall be non-refundable, regardless of the date on which this Escrow
Agreement terminates. Tritel shall pay half of such fee and the Airwave Investor
Indemnitors shall each pay an equal portion of the remaining half of such fee.
Tritel and the Airwave Investor Indemnitors shall reimburse and indemnify the
Escrow Agent for, and hold it harmless against, any loss, damages, cost or
expense, including but not limited to reasonable attorneys' fees, reasonably
incurred by the Escrow Agent in connection with the Escrow Agent's performance
of its duties and obligations under this Escrow Agreement, as well as the
reasonable costs and expenses of defending against any claim or liability
relating to this

                                       5
<PAGE>

Escrow Agreement; provided, however, that notwithstanding the foregoing, Tritel
                  --------  -------
and the Airwave Investor Indemnitors shall not be required to indemnify the
Escrow Agent for any such loss, liability, cost or expense arising as a result
of the Escrow Agent's willful misconduct, bad faith or gross negligence or
breach of this Escrow Agreement.

        Section 4.04  Resignation and Removal of the Escrow Agent.  The Escrow
                      -------------------------------------------
Agent may resign upon thirty (30) days' prior written notice to Tritel and the
Airwave Investor Indemnitors. In addition, the Escrow Agent may be removed and
replaced on a date designated in a written instrument jointly signed by Tritel
and the Airwave Investor Indemnitors and delivered to the Escrow Agent.
Notwithstanding the foregoing, no such resignation or removal shall be effective
until a successor escrow agent has acknowledged its appointment as such as
provided in paragraph (b) below. In either event, upon the effective date of
such resignation or removal, the Escrow Agent shall deliver the property
comprising the Escrow Fund to such successor escrow agent, together with such
records maintained by the Escrow Agent in connection with its duties hereunder
and other information with respect to the Escrow Fund as such successor may
reasonably request.

        (a)  If a successor escrow agent shall not have acknowledged its
appointment as such as provided in paragraph (b) below, in the case of a
resignation, prior to the expiration of thirty (30) calendar days following the
date of a notice of resignation or, in the case of a removal, on the date
designated for the Escrow Agent's removal, as the case may be, because Tritel
and the Airwave Investor Indemnitors are unable to agree on a successor escrow
agent, or for any other reason, the Escrow Agent may select a successor escrow
agent and any such resulting appointment shall be binding upon all of the
parties to this Escrow Agreement.

        (b)  Upon written acknowledgment by a successor escrow agent appointed
in accordance with the foregoing provisions of this Section 4.04 of its
agreement to serve as escrow agent hereunder and the receipt of the property
then comprising the Escrow Fund, the Escrow Agent shall be fully released and
relieved of all duties, responsibilities and obligations under this Escrow
Agreement, except as otherwise provided herein, and such successor escrow agent
shall for all purposes hereof be the Escrow Agent.

                                   ARTICLE V

                                 MISCELLANEOUS
        Section 5.01  Amendment.  This Escrow Agreement may be amended,
                      ---------
supplemented or modified only by a written instrument duly executed by or on
behalf of each Party hereto.

        Section 5.02  Counterparts.  This Escrow Agreement may be executed in
                      ------------
any number of counterparts, each of which will be deemed an original, but all of
which, when executed and delivered to and by each Party, together will
constitute one and the same instrument.

        Section 5.03  GOVERNING LAW; JURISDICTION.  THIS ESCROW AGREEMENT SHALL
                      ---------------------------
BE DEEMED TO HAVE BEEN CONSUMMATED IN NEW

                                       6
<PAGE>

YORK COUNTY, IN THE STATE OF NEW YORK. ALL DISPUTES AND PROCEEDINGS BY AND
BETWEEN THE PARTIES WILL BE SOLELY GOVERNED, CONSTRUED AND ENFORCED IN
ACCORDANCE WITH THE INTERNAL LAW OF THE STATE OF NEW YORK WITHOUT REGARD TO ITS
CONFLICTS AND CHOICE OF LAW RULES. THE PARTIES AND THE ESCROW AGENT AGREE THAT
ANY CONTROVERSY, CLAIM OR DISPUTE ARISING OUT OF OR RELATING TO THIS ESCROW
AGREEMENT, OR THE CONSTRUCTION, INTERPRETATION, PERFORMANCE, BREACH,
TERMINATION, ENFORCEABILITY OR VALIDITY OF THE ESCROW AGREEMENTS OR THE
ARBITRATION PROVISIONS CONTAINED THEREIN, INCLUDING WITHOUT LIMITATION THE
DETERMINATION OF THE SCOPE OF THIS ESCROW AGREEMENT TO ARBITRATE, SHALL BE
DETERMINED BY ARBITRATION IN ACCORDANCE WITH THE ARBITRATION PROVISION SET FORTH
IN ARTICLE IV OF THE AGREEMENT.

        Section 5.04  Headings.  The headings used in this Escrow Agreement have
                      --------
been inserted for convenience of reference only and do not define or limit the
provisions hereof.

        Section 5.05  Invalid Provisions.  If any provision of this Escrow
                      ------------------
Agreement is held to be illegal, invalid or unenforceable under any applicable
present or future law, and if the rights or obligations of any party hereto
under this Escrow Agreement will not be materially and adversely affected
thereby, (i) such provision will be fully severable, (ii) this Escrow Agreement
will be construed and enforced as if such illegal, invalid or unenforceable
provision had never comprised a part hereof, (iii) the remaining provisions of
this Escrow Agreement will remain in full force and effect and will not be
affected by the illegal, invalid or unenforceable provision or by its severance
herefrom and (iv) in lieu of such illegal, invalid or unenforceable provision,
there will be added automatically as a part of this Escrow Agreement a legal,
valid and enforceable provision as similar in terms to such illegal, invalid or
unenforceable provision as may be possible.

        Section 5.06  No Assignment; Binding Effect.  Neither this Escrow
                      -----------------------------
Agreement nor any right, interest or obligation hereunder may be assigned by any
Party without the prior written consent of each Party hereto and any attempt to
do so will be void, except for assignments and transfers by operation of law.
Subject to the preceding sentence, this Escrow Agreement is binding upon, inures
to the benefit of and is enforceable by the Parties hereto and their respective
successors and assigns.

        Section 5.07  Notices.  All notices, requests and other communications
                      -------
required to be sent hereunder must be in writing and will be deemed to have been
duly given only if delivered personally or by confirmed facsimile transmission
or mailed (postage prepaid, certified or registered, return receipt requested)
to the Parties at the following addresses or facsimile numbers:

                                       7
<PAGE>

          If to Tritel to:

                Tritel, Inc.
                111 E. Capitol Street, Suite 500
                Jackson Mississippi 39201
                P.O. Box 23033
                Jackson, MS  39225-3033
                Facsimile No.:  (601) 914-8285
                Attn:  General Counsel

          with copies to:

                TeleCorp PCS, Inc.
                1010 N. Glebe Road
                Arlington, VA 22201
                Attn:  Chief Financial Officer
                Facsimile No.:  (203) 236-1376

                and

                Cadwalader, Wickersham & Taft
                100 Maiden Lane
                New York, NY  10038
                Facsimile No.:  (212) 504-6666
                Attn:  Brian Hoffmann, Esq.

          If to Airwave Investor Indemnitors, to:

                Mercury PCS Investors, LLC
                200 East Capitol, Suite 1601
                Jackson, MS  39201
                Facsimile No.:  (601) 354-2477
                Attn:  Robert G. Mounger

                Clayton Associates, LLC
                113 Seaboard Lane
                Suite B-200
                Franklin, TN  37067-8215
                Facsimile No.:  (615) 320-0224
                Attn:  Chris Kyriopoulos

                                       8
<PAGE>

                M3, LLC
                Post Office Box 23033
                Jackson, MS  39225-3033
                111 E. Capitol Street, Suite 500
                Jackson, MS 39201
                Facsimile No.:  (601) 914-8020

                McCarty Communications, LLC
                6360 I-55 North, Suite 480
                Jackson, MS  39211
                Facsimile No.:  (601) 991-0200
                Attn:  Marsha Wells

                DC Investment Partners Exchange Fund, L.P.
                One Burton Hills Blvd., Suite 180
                Nashville, TN  37215
                Facsimile No.:  (615) 263-0234
                Attn:  Joel Goldberg

                FCA Venture Partners I, L.P.
                By:  DC Investment Partners, LLC
                One Burton Hills Blvd., Suite 180
                Nashville, TN  37215
                Facsimile No.:  (615) 263-0234
                Attn:  Joel Goldberg

          with a copy to:

                Baker, Donelson, Bearman & Caldwell
                4268 I-55 North
                Meadowbrook Office Park
                Jackson, MS 39211
                Facsimile No.:  601-351-2424
                Attn:  William S. Painter

          If to Southern Farm Bureau Life Insurance Company, to:

                1401 Livingston Lane
                Jackson, MS  39205
                Facsimile No.:  601 321-2667
                Attn:  Joseph A. Purvis

                                       9
<PAGE>

          with a copy to:

                Phelps Dunbar, LLP
                P.O. Box 23066
                Jackson, MS  39225-3066
                Facsimile No.:  (601) 360-9777
                Attn:  Steve Wilson

          If to Airwave Escrow Agent, to:

                Firstar Bank N.A.
                Corporate Trust Department
                101 East Fifth Street
                St. Paul, MN  55101
                Facsimile No.: 651 229-6415
                Attn:  Frank Leslie

All such notices, requests and other communications will (i) if delivered
personally to the address as provided in this Section 5.07, be deemed given upon
delivery, (ii) if delivered by facsimile transmission to the facsimile number as
provided in this Section 5.07, be deemed given upon confirmation of receipt, and
(iii) if delivered by mail in the manner described above to the address as
provided in this Section 5.07, be deemed given upon receipt (in each case
regardless of whether such notice, request or other communication is received by
any other person to whom a copy of such notice is to be delivered pursuant to
this Section 5.07).  Any Party from time to time may change its address,
facsimile number or other information for the purpose of notices to that Party
by giving notice specifying such change to the other Parties hereto in the
manner set forth herein.

        Section 5.08  No Third Party Beneficiary.  The terms and provisions of
                      --------------------------
this Escrow Agreement are intended solely for the benefit of the Parties and
their respective successors or permitted assigns, and it is not the intention of
the Parties to confer third-party beneficiary rights upon any other person.

        Section 5.09  Waiver.  Any term or condition of this Escrow Agreement
                      ------
may be waived at any time by the Party that is entitled to the benefit thereof,
but no such waiver shall be effective unless expressly set forth in a written
instrument duly executed by or on behalf of the Party waiving such term or
condition. No waiver by any Party of any term or condition of this Escrow
Agreement, in any one or more instances, shall be deemed to be or construed as a
waiver of the same or any other term or condition of this Escrow Agreement on
any future occasion. All remedies, either under this Escrow Agreement or by law
or otherwise afforded, will be cumulative and not alternative.

                                      10
<PAGE>

          IN WITNESS WHEREOF, the parties hereto have caused this Escrow
Agreement to be executed as of the date first above written.

                                 Tritel, Inc.

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

                                 AIRWAVE INVESTOR INDEMNITORS

                                 Mercury PCS Investors, LLC

                                 By:  MSM, Inc., Manager

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

                                 Clayton Associates, LLC

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

                                 M3, LLC

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

                                      11
<PAGE>

                                 McCarty Communications, LLC

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

                                 DC Investment Partners Exchange Fund, L.P.

                                 By:  DC Investment Partners, LLC,

                                       it's General Partner

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

                                 FCA Venture Partners I, L.P.

                                 By:  DC Investment Partners, LLC,
                                         Its General Partner

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

                                 Southern Farm Bureau Life Insurance Company

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

                                      12
<PAGE>

                                 Escrow Agent

                                 Firstar Bank N.A.

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

                                      13
<PAGE>

                                   Schedule I

                          Airwave Investor Indemnitors
                          ----------------------------

<TABLE>
<CAPTION>
Name                               Number of Tritel Shares Held     = Number of TeleCorp Shares
                                                                    Held
-------------------------------------------------------------------------------------------------
<S>                               <C>                             <C>
Mercury PCS Investors, LLC                               242,879                          184,589
-------------------------------------------------------------------------------------------------
Clayton Associates, LLC                                    2,428                            1,844
-------------------------------------------------------------------------------------------------
M3, LLC                                                  135,284                          102,816
-------------------------------------------------------------------------------------------------
McCarty Communications, LLC                               97,152                           73,836
-------------------------------------------------------------------------------------------------
DC Investment Partners Exchange                           24,287                           18,458
 Fund, L.P.
-------------------------------------------------------------------------------------------------
FCA Venture Partners I, L.P.                              12,144                            9,229
-------------------------------------------------------------------------------------------------
Southern Farm Bureau                                     732,037                          556,348
-------------------------------------------------------------------------------------------------
Total                                                  1,246,211                          947,120
-------------------------------------------------------------------------------------------------
</TABLE>

                                      14
<PAGE>

                                                                  Execution Copy

                            DIGITAL ESCROW AGREEMENT

          This ESCROW AGREEMENT, dated as of March 12, 2001 is entered into by
and among Tritel, Inc., a Delaware corporation and wholly-owned subsidiary of
TeleCorp PCS, Inc. ("Tritel"), Digital PCS, LLC, a Mississippi limited liability
                     ------
company ("Digital"), and Firstar Bank, N.A., having an address of 101 East Fifth
Street, St. Paul, MN 55101, Corporate Trust Department, as escrow agent (the
"Escrow Agent") (each of the foregoing a "Party" and collectively the
-------------                             -----
"Parties").  Capitalized terms not otherwise defined herein shall have the
 -------
meanings ascribed to them in the Settlement Agreement (as defined herein) or the
License Purchase Agreement (as defined herein) as applicable.

          WHEREAS, Tritel and Digital and the Escrow Agent are parties to a
Settlement Agreement, dated as of the date hereof (the "Settlement Agreement");

          WHEREAS, Tritel and Digital are parties to the License Purchase
Agreement dated as of May 20, 1999 (the "License Purchase Agreement");
                                         --------------------------

          WHEREAS, Tritel became a wholly-owned subsidiary of TeleCorp PCS,
Inc., a Delaware corporation ("TeleCorp"), pursuant to a merger (the "Merger")
                               --------                               ------
that was consummated on November 13, 2000;

          WHEREAS, pursuant to the terms of the Merger, each share of Tritel
Class A Common Stock ("Tritel Shares"), was converted, effective on the
                       -------------
Reconciliation Date, into 0.76 shares of TeleCorp Class A Voting Common Stock
("TeleCorp Shares");
-----------------

          WHEREAS, the Parties hereto wish to designate the Escrow Agent to
administer an escrow for the benefit of the Parties hereto on the terms and
subject to the conditions set forth in this Escrow Agreement;

          NOW, THEREFORE, in consideration of the mutual covenants and
agreements set forth in this Escrow Agreement, and for other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, the
Parties agree as follows:

                                   ARTICLE I

                              TERMS OF THE ESCROW

        Section 1.01  Appointment of the Escrow Agent; Deposit of Escrowed
                      ----------------------------------------------------
Shares.  Tritel and Digital hereby constitute and appoint the Escrow Agent as,
------
and the Escrow Agent hereby agrees to assume and perform the duties of, escrow
agent under and pursuant to this

                                       1
<PAGE>

Escrow Agreement. The Parties shall arrange for the Escrow Agent to receive
253,789 Tritel Shares, or in the event shares are delivered in the form of
TeleCorp Shares, 192,879 TeleCorp Shares (such shares and the TeleCorp Shares
into which they are converted being the "Escrowed Shares").
                                         ---------------

        Section 1.02  Stock Certificates for Escrowed Shares. In the event the
                      --------------------------------------
Escrow Agent receives the Escrowed Shares in the form of Tritel Shares, the
Escrow Agent shall, promptly following the receipt of such Tritel Shares, take
any and all action necessary to obtain stock certificates reflecting the
conversion, pursuant to the Merger, of the Tritel Shares that constitute
Escrowed Shares into TeleCorp Shares.

        Section 1.03  The Escrow Fund.  The Escrowed Shares, any cash resulting
                      ---------------
from the disposition of the Escrowed Shares pursuant to Section 1.05 herein, any
stock dividends paid on any Escrowed Shares, or any rights or securities into
which the Escrowed Shares are convertible or have been converted, and all
earnings on any of the foregoing (collectively, the "Escrow Fund") shall be
                                                     -----------
held by the Escrow Agent as a trust fund on the terms set forth in, and subject
to the conditions of, this Escrow Agreement. Any of the persons set forth on
Schedule I hereto (each a "Digital Member") may elect by written notice to
                           --------------
Digital, Tritel and the Escrow Agent, to require Digital and the Digital Escrow
Agent to record beneficial ownership of such the number of Escrowed Shares set
forth next to the name of the Digital Member on Schedule I hereto. Such Digital
Member shall execute and deliver to the Parties to the Settlement Agreement and
to the Escrow Agent an executed counterpart of this Agreement and the Settlement
Agreement together with a certificate stating that (i) such Digital Member shall
be bound by this Agreement and the Settlement Agreement, (ii) as of the date of
such beneficial transfer of record, the representations set forth in Section
3.01 and Section 3.02 of the Settlement Agreement are true and correct, and
(iii) such Digital Member shall succeed to the rights and obligations of Digital
hereunder with respect to the Allocated Retained Digital Escrowed Shares of such
Digital Member. Digital and any Digital Member who so elects to have beneficial
ownership of Retained Digital Escrowed Shares recorded in such Digital Member's
name are hereinafter each referred to as a "Digital Investor Indemnitor" and
                                            ---------------------------
collectively as the "Digital Investor Indemnitors."  Upon an election pursuant
                     ----------------------------
to this Section 1.03, a separate account shall be established for each Digital
Investor Indemnitor and shall contain the number of Escrowed Shares set forth
next to the name of the Digital Investor Indemnitor on Schedule I hereto (each
an "Account"). The Escrow Agent shall maintain accurate and current balance
    -------
information with regard to each Account and shall maintain each Account
separately. The Escrow Fund shall not be subject to lien or attachment by any
creditor of any Party hereto and shall be used solely for the purpose set forth
in this Escrow Agreement. Amounts held in the Escrow Fund shall not be available
to, and shall not be used by, the Escrow Agent to set off any obligations of any
Party hereto owing to the Escrow Agent in any capacity.

        Section 1.04  Investment of the Escrow Fund.  The Escrow Agent shall
                      -----------------------------
invest and reinvest all cash funds, if any, held from time to time as part of
the Escrow Fund, in its discretion, in demand or time deposits in, certificates
of deposit of or bankers' acceptances issued by a depository institution or
trust company incorporated under the laws of the United States of America, any
State thereof or the District of Columbia or such other investments as the
Parties shall approve in writing. If the Escrow Agent is so required to invest
the Escrow Fund, then the Escrow Agent shall invest all or any part of the
Escrow Fund in such a manner so as to

                                       2
<PAGE>

distribute the Escrow Fund as provided herein in immediately available funds,
or, if the Escrow Fund consists of securities, the Escrow Agent shall make such
distributions by transferring certificates representing such securities.

        Section 1.05  Sale of Escrowed Shares.  Promptly upon the Escrow Agent's
                      -----------------------
receipt of written instructions from any Digital Investor Indemnitor to sell a
specified number of Escrowed Shares, the Escrow Agent shall execute the sale
requested by such instructions; provided, however, that the Escrow Agent shall
                                --------- --------
not in a single sale or series of sales, sell a number of Escrowed Shares on
behalf of a Digital Investor Indemnitor that is greater than the number of
Escrowed Shares in the Account of such Digital Investor Indemnitor, and provided
                                                                        --------
further, that the proceeds of any sale pursuant to this Section 1.05 shall
--------
immediately become part of such Account.

        Section 1.06  Notice.  Upon the Escrow Agent's receipt of any notice or
                      ------
certificate provided for in this Escrow Agreement, the Escrow Agent shall
promptly provide a copy of such notice or certificate to each Party.

                                  ARTICLE II

                        DISTRIBUTION OF THE ESCROW FUND
        Section 2.01  Claim, Objection and Resolution Certificates.
                      --------------------------------------------

        (a)  The Escrow Agent shall distribute to each of the Digital Investor
Indemnitors the portion of the Escrow Fund in the Account held for such Digital
Investor Indemnitor, on the sixth day after the "Digital Escrow Termination
Date" (as hereinafter defined) (subject to delays in delivering stock
certificates not caused by the Escrow Agent), unless the Escrow Agent has
                                              ------
received during the period commencing on the Digital Escrow Termination Date and
ending at 5:00 pm, New York City Time on the date which is five (5) business
days following the Digital Escrow Termination Date, a certificate signed by the
Secretary of Tritel (i) stating that Tritel has provided the Digital Investor
Indemnitors with notice pursuant to Section 2.03(b) of the Settlement Agreement,
and (ii) setting forth the dollar amount to which Tritel claims Tritel is
entitled (a "Claim Certificate"). As used herein, the "Digital Escrow
             -----------------
Termination Date" shall mean the earlier to occur of (x) the date the Digital
Investor Indemnitors and Tritel definitively agree in writing that all the
matters related to the Digital Indemnity Obligation have been dismissed, settled
or otherwise finally disposed of; or (y) October 15, 2001.

        (b)  If Tritel has timely provided a Claim Certificate, on the eleventh
business day following the Escrow Agent's receipt of such Claim Certificate
(subject to delays in delivering stock certificates not caused by the Escrow
Agent), the Escrow Agent shall (i) distribute to Tritel from the Escrow Fund by
deducting from the Account of each Digital Investor Indemnitor such Digital
Investor Indemnitor's pro rata share of such distribution (x) the dollar amount
set forth in the Claim Certificate, or, in the event that an Account does not
contain sufficient cash, (y) the number of Escrowed Shares which if sold at the
Market Price (as hereinafter defined), would equal the dollar amount set forth
in the Claim Certificate after deducting the cost of commissions for such sale,
rounded up to the nearest whole TeleCorp

                                       3
<PAGE>

Share, and (ii) shall distribute to each Digital Investor Indemnitor the
remaining balance in the Account of such Digital Investor Indemnitor;
provided, however, that notwithstanding the foregoing, the Escrow Agent shall
--------  --------
not make such distribution to Tritel pursuant to (i) above from the Account of
any Digital Investor Indemnitor which on or prior to the tenth business day
following the Escrow Agent's receipt of a Claim Certificate provides the Escrow
Agent with a certificate stating that such Digital Investor Indemnitor has
provided Tritel with notice pursuant to Section 2.03(c) of the Settlement
Agreement (an "Objection Certificate"). For purposes of this Section 2.01,
               ---------------------
"Market Price" means the average of the closing prices for TeleCorp Shares for
the ten consecutive trading days commencing 15 days before the date on which
payment is made.

        (c)  Notwithstanding any provision in this Escrow Agreement to the
contrary, upon the Escrow Agent's receipt, at any time, of a certificate signed
by all of the other Parties hereto (i) stating that all indemnifiable matters
pursuant to the License Purchase Agreement have been resolved, and (ii) setting
forth instructions for the distribution of the Escrow Fund (a "Resolution
                                                               ----------
Certificate"), the Escrow Agent shall promptly distribute the Escrow Fund in
-----------
accordance with the instructions contained in such certificate and this Escrow
Agreement shall terminate.

        (d)  In the event any Digital Investor Indemnitor timely provides an
Objection Certificate, the Escrow Agent shall retain in escrow the portion of
the Escrow Fund in the Account of such Digital Investor Indemnitor(s) until the
Escrow Agent receives (i) a Resolution Certificate, or (ii) instructions for the
distribution of the Escrow Fund from a three member panel certifying that it is
the board of arbitration that has been selected pursuant to ARTICLE IV of the
Settlement Agreement, in which case the Escrow Agent shall promptly comply with
such instructions.

                                  ARTICLE III

                                  TERMINATION

        Section 3.01  Termination.  This Escrow Agreement and the Escrow Agent's
                      -----------
obligations hereunder shall terminate upon a distribution of the entire Escrow
Fund made pursuant to Section 2.01 of this Escrow Agreement.

                                  ARTICLE IV

                                THE ESCROW AGENT

        Section 4.01  Duties and Obligations of the Escrow Agent. The duties and
                      ------------------------------------------
obligations of the Escrow Agent shall be limited to, and determined solely by,
the provisions of this Escrow Agreement and the notices delivered in accordance
herewith, and other than as provided herein with regard to references to the
Agreement, the Escrow Agent is not charged with knowledge of, or any duties or
responsibilities in respect of, any other agreement or document. In furtherance
and not in limitation of the foregoing:

                                       4
<PAGE>

        (i)    the Escrow Agent shall not be liable for any loss of interest
sustained as a result of investments made hereunder, if any, in accordance with
the terms hereof, including any liquidation of any investment of the Escrow Fund
prior to its maturity effected in order to make a payment required by the terms
of this Escrow Agreement;

        (ii)   the Escrow Agent shall be fully protected in relying in good
faith upon any written certification, notice, direction, request, waiver,
consent, receipt or other document that the Escrow Agent reasonably believes to
be genuine and duly authorized, executed and delivered;

        (iii)  the Escrow Agent shall not be liable for any error of judgment,
or for any act done or omitted by it, or for any mistake in fact or law, or for
anything that it may do or refrain from doing in connection herewith; provided,
                                                                      --------
however, that notwithstanding any other provision in this Escrow Agreement, the
-------
Escrow Agent shall be liable for its willful misconduct, bad faith or gross
negligence or breach of this Escrow Agreement;

        (iv)   the Escrow Agent may seek the advice of legal counsel selected
with reasonable care in the event of any dispute or question as to the
construction of any of the provisions of this Escrow Agreement or its duties
hereunder, and it shall incur no liability and shall be fully protected in
respect of any action taken, omitted or suffered by it in good faith in
accordance with the opinion of such counsel;

        (v)    in the event that the Escrow Agent shall in any instance, after
seeking the advice of legal counsel pursuant to the immediately preceding
clause, in good faith be uncertain as to its duties or rights hereunder, it
shall be entitled to refrain from taking any action in that instance and its
sole obligation, in addition to those of its duties hereunder as to which there
is no such uncertainty, shall be to keep safely all property held in the Escrow
Fund until it shall be directed otherwise in a Resolution Certificate or by a
final arbitration decision or award issued pursuant to Article IV of the
Agreement; provided, however, that in the event that the Escrow Agent has not
           --------  -------
received such written direction or arbitration decision or award within one
hundred eighty (180) calendar days after requesting the same, it shall have the
right to interplead Tritel and the Digital Investor Indemnitors in an
arbitration proceeding to be conducted in accordance with Article IV of the
Agreement;

        (vi)   the Escrow Agent may execute any of its powers or
responsibilities hereunder and exercise any rights hereunder either directly or
by or through agents or attorneys selected with reasonable care;

        (vii)  nothing in this Escrow Agreement shall be deemed to impose upon
the Escrow Agent any duty to qualify to do business or to act as a fiduciary or
otherwise in any jurisdiction other than the state of New York; and

        (viii) the Escrow Agent shall not be responsible for and shall not be
under a duty to examine or pass upon the validity, binding effect, execution or
sufficiency of this Escrow Agreement or of any agreement amendatory or
supplemental hereto.

                                       5
<PAGE>

        Section 4.02  Cooperation.  Tritel and the Digital Investor Indemnitors
                      -----------
shall provide to the Escrow Agent all instruments and documents within their
respective powers to provide that are necessary for the Escrow Agent to perform
the Escrow Agent's duties and responsibilities hereunder.

        Section 4.03  Fees and Expenses; Indemnity.  The Escrow Agent shall be
                      ----------------------------
entitled to receive a monthly fee of $175 for each full month that the Escrow
Agent serves as the Escrow Agent under this Agreement. Such fee shall be payable
semi-annually with the first payment payable on the date hereof. Such first
payment shall be non-refundable, regardless of the date on which this Escrow
Agreement terminates. Tritel shall pay half of such fee and the Digital Investor
Indemnitors shall each pay an equal portion of the remaining half of such fee.
Tritel and the Digital Investor Indemnitors shall reimburse and indemnify the
Escrow Agent for, and hold it harmless against, any loss, damages, cost or
expense, including but not limited to reasonable attorneys' fees, reasonably
incurred by the Escrow Agent in connection with the Escrow Agent's performance
of its duties and obligations under this Escrow Agreement, as well as the
reasonable costs and expenses of defending against any claim or liability
relating to this Escrow Agreement; provided, however, that notwithstanding the
                                   --------  -------
foregoing, Tritel and the Digital Investor Indemnitors shall not be required to
indemnify the Escrow Agent for any such loss, liability, cost or expense arising
as a result of the Escrow Agent's willful misconduct, bad faith or gross
negligence or breach of this Escrow Agreement.

        Section 4.04  Resignation and Removal of the Escrow Agent. The Escrow
                      -------------------------------------------
Agent may resign upon thirty (30) days' prior written notice to Tritel and the
Digital Investor Indemnitors. In addition, the Escrow Agent may be removed and
replaced on a date designated in a written instrument jointly signed by Tritel
and the Digital Investor Indemnitors and delivered to the Escrow Agent.
Notwithstanding the foregoing, no such resignation or removal shall be effective
until a successor escrow agent has acknowledged its appointment as such as
provided in paragraph (b) below. In either event, upon the effective date of
such resignation or removal, the Escrow Agent shall deliver the property
comprising the Escrow Fund to such successor escrow agent, together with such
records maintained by the Escrow Agent in connection with its duties hereunder
and other information with respect to the Escrow Fund as such successor may
reasonably request.

        (a)  If a successor escrow agent shall not have acknowledged its
appointment as such as provided in paragraph (b) below, in the case of a
resignation, prior to the expiration of thirty (30) calendar days following the
date of a notice of resignation or, in the case of a removal, on the date
designated for the Escrow Agent's removal, as the case may be, because Tritel
and the Digital Investor Indemnitors are unable to agree on a successor escrow
agent, or for any other reason, the Escrow Agent may select a successor escrow
agent and any such resulting appointment shall be binding upon all of the
parties to this Escrow Agreement.

        (b)  Upon written acknowledgment by a successor escrow agent appointed
in accordance with the foregoing provisions of this Section 4.04 of its
agreement to serve as escrow agent hereunder and the receipt of the property
then comprising the Escrow Fund, the Escrow Agent shall be fully released and
relieved of all duties, responsibilities and obligations under this Escrow
Agreement, except as otherwise provided herein, and such successor escrow agent
shall for all purposes hereof be the Escrow Agent.

                                       6
<PAGE>

                                   ARTICLE V

                                 MISCELLANEOUS
        Section 5.01  Amendment.  This Escrow Agreement may be amended,
                      ---------
supplemented or modified only by a written instrument duly executed by or on
behalf of each Party hereto.

        Section 5.02  Counterparts.  This Escrow Agreement may be executed in
                      ------------
any number of counterparts, each of which will be deemed an original, but all of
which, when executed and delivered to and by each Party, together will
constitute one and the same instrument.

        Section 5.03  GOVERNING LAW; JURISDICTION.  THIS ESCROW AGREEMENT SHALL
                      ---------------------------
BE DEEMED TO HAVE BEEN CONSUMMATED IN NEW YORK COUNTY, IN THE STATE OF NEW YORK.
ALL DISPUTES AND PROCEEDINGS BY AND BETWEEN THE PARTIES WILL BE SOLELY GOVERNED,
CONSTRUED AND ENFORCED IN ACCORDANCE WITH THE INTERNAL LAW OF THE STATE OF NEW
YORK WITHOUT REGARD TO ITS CONFLICTS AND CHOICE OF LAW RULES. THE PARTIES AND
THE ESCROW AGENT AGREE THAT ANY CONTROVERSY, CLAIM OR DISPUTE ARISING OUT OF OR
RELATING TO THIS ESCROW AGREEMENT, OR THE CONSTRUCTION, INTERPRETATION,
PERFORMANCE, BREACH, TERMINATION, ENFORCEABILITY OR VALIDITY OF THE ESCROW
AGREEMENTS OR THE ARBITRATION PROVISIONS CONTAINED THEREIN, INCLUDING WITHOUT
LIMITATION THE DETERMINATION OF THE SCOPE OF THIS ESCROW AGREEMENT TO ARBITRATE,
SHALL BE DETERMINED BY ARBITRATION IN ACCORDANCE WITH THE ARBITRATION PROVISION
SET FORTH IN ARTICLE IV OF THE AGREEMENT.

        Section 5.04  Headings.  The headings used in this Escrow Agreement have
                      --------
been inserted for convenience of reference only and do not define or limit the
provisions hereof.

        Section 5.05  Invalid Provisions.  If any provision of this Escrow
                      ------------------
Agreement is held to be illegal, invalid or unenforceable under any applicable
present or future law, and if the rights or obligations of any party hereto
under this Escrow Agreement will not be materially and adversely affected
thereby, (i) such provision will be fully severable, (ii) this Escrow Agreement
will be construed and enforced as if such illegal, invalid or unenforceable
provision had never comprised a part hereof, (iii) the remaining provisions of
this Escrow Agreement will remain in full force and effect and will not be
affected by the illegal, invalid or unenforceable provision or by its severance
herefrom and (iv) in lieu of such illegal, invalid or unenforceable provision,
there will be added automatically as a part of this Escrow Agreement a legal,
valid and enforceable provision as similar in terms to such illegal, invalid or
unenforceable provision as may be possible.

        Section 5.06  No Assignment; Binding Effect.  Neither this Escrow
                      -----------------------------
Agreement nor any right, interest or obligation hereunder may be assigned
by any Party without the prior

                                       7
<PAGE>

written consent of each party hereto and any attempt to do so will be void,
except for assignments and transfers by operation of law. Subject to the
preceding sentence, this Escrow Agreement is binding upon, inures to the benefit
of and is enforceable by the Parties hereto and their respective successors and
assigns.

        Section 5.07  Notices.  All notices, requests and other communications
                      -------
required to be sent hereunder must be in writing and will be deemed to have been
duly given only if delivered personally or by confirmed facsimile transmission
or mailed (postage prepaid, certified or registered, return receipt requested)
to the Parties at the following addresses or facsimile numbers:

          If to Tritel to:

                Tritel, Inc.
                111 E. Capitol Street
                Suite 500
                Jackson Mississippi 39201
                P.O. Box 23033
                Jackson, MS 39225-3033
                Facsimile No.:  (601) 914-8285
                Attn:  General Counsel

          with copies to:

                TeleCorp PCS, Inc.
                1010 N. Glebe Road
                Arlington, VA 22201
                Attn:  Chief Financial Officer
                Facsimile No.:  (203) 236-1376

                and

                Cadwalader, Wickersham & Taft
                100 Maiden Lane
                New York, NY  10038
                Facsimile No.:  (212) 504-6666
                Attn:  Brian Hoffmann, Esq.

          If to Digital, to:

                Digital PCS, LLC
                c/o Southern Farm Bureau Life Insurance Company
                1401 Livingston Lane
                Jackson, MS  39205
                Facsimile No.:  (601) 321-2667
                Attn:  Joseph A. Purvis

                                       8
<PAGE>

          with a copy to:

                Young, Williams, Henderson, & Fuselier P.A.
                210 East Capitol Street
                Suite 2000
                Jackson, MS  39201
                P.O. Box 23059
                Jackson, MS  39225
                Facsimile No.:  (601) 355-6136
                Attn:  Don Goode

          If to Escrow Agent, to:

                Firstar Bank, N.A.
                Corporate Trust Department
                101 East Fifth Street
                St. Paul, MN  55101
                Facsimile No.:  (651) 229-6415
                Attn:  Frank Leslie

All such notices, requests and other communications will (i) if delivered
personally to the address as provided in this Section 5.07, be deemed given upon
delivery, (ii) if delivered by facsimile transmission to the facsimile number as
provided in this Section 5.07, be deemed given upon confirmation of receipt, and
(iii) if delivered by mail in the manner described above to the address as
provided in this Section 5.07, be deemed given upon receipt (in each case
regardless of whether such notice, request or other communication is received by
any other person to whom a copy of such notice is to be delivered pursuant to
this Section 5.07).  Any Party from time to time may change its address,
facsimile number or other information for the purpose of notices to that Party
by giving notice specifying such change to the other Party hereto in the manner
set forth herein.

        Section 5.08  No Third Party Beneficiary.  The terms and provisions of
                      --------------------------
this Escrow Agreement are intended solely for the benefit of the Parties and
their respective successors or permitted assigns, and it is not the intention of
the Parties to confer third-party beneficiary rights upon any other person.

        Section 5.09  Waiver.  Any term or condition of this Escrow Agreement
                      ------
may be waived at any time by the party that is entitled to the benefit thereof,
but no such waiver shall be effective unless expressly set forth in a written
instrument duly executed by or on behalf of the Party waiving such term or
condition. No waiver by any Party of any term or condition of this Escrow
Agreement, in any one or more instances, shall be deemed to be or construed as a
waiver of the same or any other term or condition of this Escrow Agreement on
any future occasion. All remedies, either under this Escrow Agreement or by law
or otherwise afforded, will be cumulative and not alternative.

                                       9
<PAGE>

          IN WITNESS WHEREOF, the parties hereto have caused this Escrow
Agreement to be executed as of the date first above written.

                                 Tritel, Inc.

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

                                 Digital PCS, LLC

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

                                 Firstar Bank N.A., as Escrow Agent

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

                                      10
<PAGE>

                                   Schedule I

              Digital Members and Retained Digital Escrowed Shares
              ----------------------------------------------------

<TABLE>
<CAPTION>
Name                            Tritel Shares Beneficially Held     = Number of TeleCorp Shares
                                                                    Beneficially Held
-------------------------------------------------------------------------------------------------
<S>                             <C>                               <C>
Mercury PCS Investors, LLC                                42,043                           31,952
-------------------------------------------------------------------------------------------------
Clayton Associates, LLC                                      420                              319
-------------------------------------------------------------------------------------------------
M3, LLC                                                   23,418                           17,798
-------------------------------------------------------------------------------------------------
McCarty Communications, LLC                               16,817                           12,781
-------------------------------------------------------------------------------------------------
DC Investment Partners                                     4,205                            3,195
 Exchange Fund, L.P.
-------------------------------------------------------------------------------------------------
FCA Venture Partners I, L.P.                               2,102                            1,598
-------------------------------------------------------------------------------------------------
Southern Farm Bureau                                     126,717                           96,304
-------------------------------------------------------------------------------------------------
E.B. Martin, Jr.                                          12,689                            9,644
-------------------------------------------------------------------------------------------------
Jerry M. Sullivan, Jr.                                    12,689                            9,644
-------------------------------------------------------------------------------------------------
William M. Mounger, II                                    12,689                            9,644
-------------------------------------------------------------------------------------------------
Total                                                    253,789                          192,879
-------------------------------------------------------------------------------------------------
</TABLE>

                                      11
<PAGE>

                                  Tritel, Inc.
                             111 E. Capitol Street
                                   Suite 500
                           Jackson Mississippi 39201

                                 March 12, 2001

Trustmark National Bank, N.A.
248 East Capitol
Jackson, Mississippi 39201
Attn:  W. Sanders Carter, Jr.

Dear Mr. Carter:

     This letter shall serve to notify you under that certain Collateral Agency
Agreement dated as of January 7, 1999, among Trustmark National Bank, N.A.,
Tritel, Inc. ("Tritel") and Ericsson Inc. ("Ericsson") as amended by that
certain First Amendment to Collateral Agency Agreement dated the 12th day of
March, 2001 (the "Collateral Agency Amendment"), that a dispute has arisen and
is continuing in respect of an indemnification obligation of Airwave
Communications, LLC ("Airwave") to Tritel pursuant to the Securities Purchase
Agreement.  Tritel and the members of Airwave (the "Airwave Investor
Indemnitors") have entered into a settlement agreement dated as of the 12th day
of March (the "Settlement Agreement") under the terms of which 1,246,211 shares
of Tritel Class A common stock (947,120 shares of TeleCorp PCS, Inc. Class A
voting common stock ("TeleCorp Shares")) shall be delivered to Firstar Bank,
N.A. (the "New Escrow Agent") to hold in a new escrow in favor of Tritel.

     Tritel hereby directs you to deliver instructions to the appropriate
transfer agent to cause the shares represented by the Tritel stock certificates
set forth on Schedule I hereto (the "Tritel Certificates") (i) to be converted
into TeleCorp Shares and to be reissued in the names of the Old Mercury
Stockholders or their designees as set forth on, and in the denominations
specified in, Schedule II hereto and (ii) to have the new stock certificates
representing such TeleCorp Shares (the "New Certificates") returned to you.

     Tritel further directs you to promptly, and in any event within five (5)
days after your receipt of the New Certificates from the transfer agent, (i)
distribute the New Certificates representing the shares described in Part A of
Schedule II hereto to Charles W. Ferguson at 4268 I-55 North, Meadowbrook Office
Park, Jackson, Mississippi 39211; (ii) distribute the New Certificates
representing the shares described in Part B of Schedule II hereto to Firstar
Bank, N.A., Corporate Trust Department, at 101 East Fifth Street St. Paul, MN
55101 Attn: Frank Leslie; and (iii) provide written notice to Ericsson that you
have delivered the New Certificates to Firstar Bank, N.A. and Charles W.
Ferguson.

                                       1
<PAGE>

     The undersigned officer of Tritel hereby certifies that the statements
contained herein are true and correct as of the date hereof.  Terms used herein
and not defined shall have the specific meanings set forth in the Collateral
Agency Agreement.

                                    Tritel, Inc.

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

                                       2
<PAGE>

                                  SCHEDULE I

<TABLE>
<CAPTION>
Shareholder                                       Certificate #   Class      #of Tritel Shares
-----------                                       -------------   -----      -----------------
<S>                                               <C>             <C>        <C>
Clayton Associates, LLC                           TA0181            A                14,164.15
Clayton Associates, LLC                           TD18              D                   958.34
DC Investment Partners Exchange Fund, LP          TA0188            A               141,706.77
DC Investment Partners Exchange Fund, LP          TD27              D                 9,587.82
FCA Venture Partners I, LP                        TA0198            A                70,849.40
FCA Venture Partners I, LP                        TD29              D                 4,793.64
M3, LLC                                           TA0184            A               789,293.33
M3, LLC                                           TD23              D                53,403.25
McCarty Communications, LLC                       TA0186            A               566,815.01
McCarty Communications, LLC                       TD25              D                38,350.46
Mercury PCS Investors, LLC                        TA0193            A             1,417,043.57
Mercury PCS Investors, LLC                        TD31              D                95,876.57
Southern Farm Bureau                              TA0192            A             4,270,971.01
Southern Farm Bureau                              TD21              D               288,972.09
</TABLE>

                                       3
<PAGE>

                                  SCHEDULE II

<TABLE>
<CAPTION>
                                                     TeleCorp                   TeleCorp
                                                  Class A Common             Class F Common
                                           ------------------------------------------------------
<S>                                          <C>                       <C>
PART A
------
Shares to be Delivered  to Charles W.
Ferguson
--------
Southern Farm Bureau Life Insurance Co.                     2,907,011                       2,196
M3, LLC                                                           ---                         405
Bear Stearns Security Corp.                                   537,226                         ---
McCarty Communications, LLC                                   385,797                         291
DC Investment Partners Exchange Fund, LP                       96,452                          72
FCA Venture Partners I, LP                                     48,222                          36
Clayton Associates, LLC                                         9,641                           7
Mercury PCS Investors, LLC                                        ---                         728
Bear Stearns Security Corp.                                   964,501                         ---
                                           ------------------------------------------------------
                                                            4,948,850                       3,735
PART B
------
Shares to be Delivered to New Escrow Agent
------------------------------------------
Southern Farm Bureau Life Insurance Co.                       556,348
M3, LLC                                                       102,816
McCarty Communications, LLC                                    73,836
DC Investment Partners Exchange Fund, LP                       18,458
FCA Venture Partners I, LP                                      9,229
Clayton Associates, LLC                                         1,844
Mercury PCS Investors, LLC                                    184,589
                                           --------------------------
                                                              947,120
</TABLE>

                                       4
<PAGE>

                                                        March 12, 2001

James H. Neeld, IV
Secretary
Tritel, Inc.
111 E. Capitol Street, Suite 500

You are currently holding securities issued in the name of Digital PCS, LLC
("Digital") as security for certain indemnification obligations of Digital under
the terms of that certain License Purchase Agreement (the "License Purchase
Agreement") dated May 20, 1999 between Digital, William Mounger, II, E. B.
Martin, Jr. and Jerry M. Sullivan, Jr. and Tritel, Inc. ("Tritel").

This shall serve to notify you that a dispute has arisen and is continuing
between Digital and Tritel in respect of the indemnification obligations of
Digital under the License Purchase Agreement.  Tritel and Digital have entered
into a Settlement Agreement dated as of the 12th day of March, 2001, (the
"Settlement Agreement") under the terms of which 253,789 shares of Tritel Class
A Common Stock (192,879 shares of TeleCorp PCS, Inc. ("TeleCorp") Class A Voting
Common Stock ("TeleCorp Shares")) shall be delivered to Firstar Bank, N.A. to
hold in a new escrow in favor of Tritel.

Tritel and Digital hereby direct you to deliver Tritel stock certificate number
TA-0448 representing 1,125,329 shares of TeleCorp Class A Voting Common Stock
(the "Existing Certificate"), together with any accompany stock powers, to the
appropriate transfer agent with instructions to (i) have the shares represented
by such certificate converted into TeleCorp Shares and to be re-issued in the
names of the parties as set forth on (or retired to treasury, as the case may
be), and in the denominations specified in, Schedule I hereto and (ii) to have
the new stock certificates representing such TeleCorp Shares (the "New
Certificates") returned to you.

Tritel further directs you to promptly, and in any event within five (5) days
after your receipt of the New Certificates from the transfer agent, (i)
distribute the New Certificates representing the shares described in Part A of
Schedule II hereto to Charles W. Ferguson at 4268 I-55 North, Meadowbrook Office
Park, Jackson, Mississippi 39211; (ii) distribute the New Certificates
representing the shares described in Part B of Schedule II hereto to Firstar
Bank, N.A., Corporate Trust Department, at 101 East Fifth Street St. Paul, MN
55101 Attn: Frank Leslie.

                                       1
<PAGE>

The undersigned officer or representative of Tritel and Digital hereby certify
that the statements contained herein are true and correct as of the date hereof.

Digital PCS, LLC  Tritel, Inc.

By:_________________________________    By:_________________________________

Printed Name:________________________  Printed Name:________________________

Title:_______________________________  Title:_______________________________

                                       2
<PAGE>

                                   SCHEDULE I

<TABLE>
<CAPTION>

                                                                                # Shares
                                                                                --------
<S>                                                                             <C>
Retire to Treasury                                                               142,745
Jerry M. Sullivan, Jr.                                                            29,601
William M. Mounger, II                                                            29,601
E. B. Martin, Jr.                                                                 29,601
Southern Farm Bureau Life Insurance Company                                      413,142
Bear Stearns Security Corp.                                                       75,563
McCarty Communications, LLC                                                       54,830
DC Investment Partners Exchange Fund, L.P.                                        13,567
FCA Venture Partners I, L.P.                                                       6,782
Clayton Associates, LLC                                                            1,357
Bear Stearns Security Corp.                                                      135,661
Jerry M. Sullivan, Jr.                                                             9,644
William M. Mounger, II                                                             9,644
E. B. Martin, Jr.                                                                  9,644
Southern Farm Bureau Life Insurance Company                                       96,304
M3, LLC                                                                           17,798
McCarty Communications, LLC                                                       12,781
DC Investment Partners Exchange Fund, L.P.                                         3,195
FCA Venture Partners, LLC                                                          1,598
Clayton Associates, LLC                                                              319
Mercury PCS Investors, LLC                                                        31,952
                                                                               ---------
  Total                                                                        1,125,329
</TABLE>

                                       3
<PAGE>

                                  SCHEDULE II

Part A
------
Shares to be Delivered c/o Charles Ferguson
-------------------------------------------

Jerry M. Sullivan, Jr.                                         29,601
William M. Mounger, II                                         29,601
E. B. Martin, Jr.                                              29,601
Southern Farm Bureau Life Insurance Company                   413,142
Bear Stearns Security Corp.                                    75,563
McCarty Communications, LLC                                    54,830
DC Investment Partners Exchange Fund, L.P.                     13,567
FCA Venture Partners I, L.P.                                    6,782
Clayton Associates, LLC                                         1,357
Bear Stearns Security Corp.                                   135,661
                                                              -------
Total                                                         789,705

Part B
------
Shares to be Delivered to Firstar Bank, N.A., Corporate Trust Department
------------------------------------------------------------------------

Jerry M. Sullivan, Jr.                                    9,644
William M. Mounger, II                                    9,644
E. B. Martin, Jr.                                         9,644
Southern Farm Bureau Life Insurance Company              96,304
M3, LLC                                                  17,798
McCarty Communications, LLC                              12,781
DC Investment Partners Exchange Fund, L.P.                3,195
FCA Venture Partners I, L.P.                              1,598
Clayton Associates, LLC                                     319
Mercury PCS Investors, LLC                               31,952
                                                        -------
                                                        192,879
Total

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