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Exhibit 4.4  


 
 

MOVIE GALLERY, INC.    
    
    2003 EMPLOYEE STOCK PURCHASE PLAN    
    


        The following constitutes the provisions of the 2003 Employee Stock Purchase Plan of Movie Gallery, Inc. 


        1.    Purpose.    The purpose of the Plan is to provide Employees with an opportunity to
purchase Common Stock of the Company. It is the intention of the Company to have the Plan qualify as an "Employee Stock Purchase Plan" under Section 423 of the Code. The provisions of the Plan
shall, accordingly, be construed so as to extend and limit participation in a manner consistent with the requirements of that section of the Code. 



        2.    Definitions.    



        (a)   "Board" means the Board of Directors of the Company. 


        (b)   "Code" means the Internal Revenue Code of 1986, as amended. 


        (c)   "Common Stock" means the common stock, par value $.001 per share, of the Company. 



        (d)   "Company" means Movie Gallery, Inc., a Delaware corporation. 


        (e)   "Compensation" means total cash compensation received by an Employee from the Company or a Designated Subsidiary. By way
of illustration, but not limitation, Compensation includes regular compensation such as salary, wages, overtime, shift differentials, bonuses, commissions and incentive compensation, but excludes
relocation, expense reimbursements, tuition or other reimbursements and income realized as a result of participation in any stock option, stock purchase, or similar plan of the Company or any
Designated Subsidiary. 


        (f)    "Continuous Status as an Employee" means the absence of any interruption or termination of service as an Employee.
Continuous Status as an Employee shall not be considered interrupted in the case of (i) sick leave; (ii) military leave; (iii) any other leave of absence approved by the Board or
other administrator of the Plan or pursuant to any Company-approved benefit plan or program or required by any applicable law, including the Family and Medical Leave Act of 1993, provided that such
leave is for a period of not more than 90 days, unless reemployment upon the expiration of such leave is guaranteed by contract or statute, or (iv) in the case of transfers between
locations of the Company or between the Company and its Designated Subsidiaries. 


        (g)   "Contributions" means all amounts credited to the account of a participant pursuant to the Plan. 


        (h)   "Corporate Transaction" means a sale of all or substantially all of the Company's assets, or a merger, consolidation or
other capital reorganization of the Company with or into another corporation. 


        (i)    "Designated Broker" has the meaning given such term in Section 5(a). 



        (j)    "Designated Subsidiaries" means the Subsidiaries that have been designated by the Board from time to time in its sole
discretion as eligible to participate in the Plan. 


        (k)   "Employee" means any person, including an Officer, who is an Employee of the Company or one of its Designated
Subsidiaries for tax purposes and who is customarily employed for at least twenty (20) hours per week and more than five (5) months in a calendar year by the Company or one of its
Designated Subsidiaries. 


        (l)    "Enrollment Documents" has the meaning given such term in Section 5(a). 


        (m)  "Exchange Act" means the Securities Exchange Act of 1934, as amended. 






 




        (n)   "Fair Market Value" has the meaning given such term in Section 7(b). 



        (o)   "New Purchase Date" has the meaning given such term in Section 18(b). 


        (p)   "Offering Date" means the first business day of each Offering Period of the Plan. 


        (q)   "Offering Period" means a period of six (6) months commencing on April 1 and October 1 of each year. 



        (r)   "Officer" means a person who is an officer of the Company within the meaning of Section 16 of the Exchange Act and
the rules and regulations promulgated thereunder. 


        (s)   "Plan" means this 2003 Employee Stock Purchase Plan. 


        (t)    "Purchase Date" means the last day of each Offering Period of the Plan. 



        (u)   "Purchase Price" means with respect to an Offering Period an amount equal to 85% of the Fair Market Value of a Share of
Common Stock on the Offering Date or on the Purchase Date, whichever is lower; provided, however, that in the event (i) of any stockholder-approved increase in the number of Shares available
for issuance under the Plan, (ii) all or a portion of such additional Shares are to be issued with respect to the Offering Period that is underway at the time of such increase ("Additional
Shares"), and (iii) the Fair Market Value of a Share of Common Stock on the date of such increase (the "Approval Date Fair Market Value") is higher than the Fair Market Value on the Offering
Date for any such Offering Period, then in such instance the Purchase Price with respect to Additional Shares shall be 85% of the Approval Date Fair Market Value or the Fair Market Value of a Share of
Common Stock on the Purchase Date, whichever is lower. 


        (v)   "Reserves" has the meaning given such term in Section 18(a). 


        (w)  "Share" means a share of Common Stock, as adjusted in accordance with Section 18 of the Plan. 



        (x)   "Subsidiary" means a corporation, domestic or foreign, of which not less than 50% of the voting shares are held by the
Company or a Subsidiary, whether or not such corporation now exists or is hereafter organized or acquired by the Company or a Subsidiary. 




        3.    Eligibility.    



        (a)   Any
person who is an Employee as of the Offering Date of a given Offering Period shall be eligible to participate in such Offering Period under the Plan, subject to the
requirements of Section 5(a) and the limitations imposed by Section 423(b) of the Code. 


        (b)   Any
provisions of the Plan to the contrary notwithstanding, no Employee shall be granted an option under the Plan (i) if, immediately after the grant, such
Employee (or any other person whose stock would be attributed to such Employee pursuant to Section 424(d) of the Code) would own capital stock of the Company and/or hold outstanding options to
purchase stock possessing five percent (5%) or more of the total combined voting power or value of all classes of stock of the Company or of any Subsidiary of the Company, or (ii) if such
option would permit his or her rights to purchase stock under all employee stock purchase plans (described in Section 423 of the Code) of the Company and its Subsidiaries to accrue at a rate
that exceeds Twenty-Five Thousand Dollars ($25,000) of the Fair Market Value of such stock (determined at the time such option is granted)
for each calendar year in which such option is outstanding at any time. 




        4.    Offering Periods.    The Plan shall be implemented by a series of Offering Periods of
six (6) months' duration, with new Offering Periods commencing on or about April 1 and October 1 of each year (or at such other time or times as may be determined by the Board).
The first Offering Period shall commence on October 1, 2003 and continue until March 31, 2004. The Plan shall continue 


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until
terminated in accordance with Section 19 hereof. The Board shall have the power to change the duration and/or the frequency of Offering Periods with respect to future offerings without
stockholder approval if such change is announced at least five (5) days prior to the scheduled beginning of the first Offering Period to be affected. 



        5.    Participation.    



        (a)   An
eligible Employee may become a participant in the Plan by completing a subscription agreement and any other required documents ("Enrollment Documents") provided by
the Company and submitting them to the Company's Human Resources Department or the stock brokerage or other financial services firm designated by the Company ("Designated Broker") prior to the
applicable Offering Date, unless a later time for submission of the Enrollment Documents is set by the Board for all eligible Employees with respect to a given Offering Period. The Enrollment
Documents and their submission may be electronic, as directed by the Company. The Enrollment Documents shall set forth the percentage of the participant's Compensation (subject to Section 6(a)
below) to be paid as Contributions pursuant to the Plan. 


        (b)   Payroll
deductions shall commence on the first full payroll following the Offering Date and shall end on the last payroll paid on or prior to the Purchase Date of the
Offering Period to which the Enrollment Documents are applicable, unless sooner terminated by the participant as provided in Section 10. 




        6.    Method of Payment of Contributions.    



        (a)   A
participant shall elect to have payroll deductions made on each payday during the Offering Period in an amount not less than one percent (1%) and not more than ten
percent (10%) (or such greater percentage as the Board may establish from time to time before an Offering Date) of such participant's Compensation on each payday during the Offering Period. All
payroll deductions made by a participant shall be credited to his or her account under the Plan. A participant may not make any additional payments into such account. 



        (b)   A
participant may discontinue his or her participation in the Plan as provided in Section 10, or, on one occasion only during an Offering Period may increase or
decrease the rate of his or her Contributions with respect to the Offering Period by completing and filing with the Company new Enrollment Documents authorizing a change in the payroll deduction rate.
The change in rate shall be effective as of the beginning of the next payroll period following the date of filing of the new Enrollment Documents, if the documents are completed at least five
(5) business days prior to such date and, if not, as of the beginning of the next succeeding payroll period. 



        (c)   Notwithstanding
the foregoing, to the extent necessary to comply with Section 423(b)(8) of the Code and Section 3(b) herein, a participant's payroll
deductions may be decreased during any Offering Period scheduled to end during the current calendar year to 0%. Payroll deductions shall re-commence at the rate provided in such
participant's Enrollment Documents at the beginning of the first Offering Period that is scheduled to end in the following calendar year, unless terminated by the participant as provided in
Section 10. 




        7.    Grant of Option.    



        (a)   On
the Offering Date of each Offering Period, each eligible Employee participating in such Offering Period shall be granted an option to purchase on each Purchase Date a
number of Shares of Common Stock determined by dividing such Employee's Contributions accumulated prior to such Purchase Date and retained in the participant's account as of the Purchase Date by the
applicable Purchase Price; provided however that the maximum number of Shares an Employee may purchase during each Offering Period shall be 10,000 Shares (subject to any 



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adjustments
pursuant to Section 18 below), and provided further that such purchase shall be subject to the limitations set forth in Sections 3(b) and 12. The Board may impose additional limits
for any offering Period. 


        (b)   The
fair market value of the Company's Common Stock on a given date (the "Fair Market Value") shall be determined by the Board in its discretion based on the closing
sales price of the Common Stock for such date (or, in the event that the Common Stock is not traded on such date, on the immediately preceding trading date), as reported by the National Association of
Securities Dealers Automated Quotation (Nasdaq) National Market or, if such price is not reported, the mean of the bid and asked prices per share of the Common Stock as reported by Nasdaq or, in the
event the Common Stock is listed on a stock exchange, the Fair Market Value per share shall be the closing sales price on such exchange on such date (or, in the event that the Common Stock is not
traded on such date, on the immediately preceding trading date), as reported in The Wall Street Journal. 




        8.    Exercise of Option.    Unless a participant withdraws from the Plan as provided in
Section 10, his or her option for the purchase of Shares will be exercised automatically on each Purchase Date of an Offering Period, and the maximum number of full Shares subject to the option
will be purchased at the applicable Purchase Price with the accumulated Contributions in his or her account. In lieu of issuing fractional Shares, any excess Contributions shall remain in the
participant's account, and shall be applied to future Share purchases. The Shares purchased upon exercise of an option hereunder shall be deemed to be transferred to the participant on the Purchase
Date. During his or her lifetime, a participant's option to purchase Shares hereunder is exercisable only by him or her. 


        9.    Delivery.    As promptly as practicable after a Purchase Date, the number of Shares
purchased by each participant upon exercise of his or her option shall be deposited into an account established in the participant's name with the Designated Broker. Any payroll deductions accumulated
in a participant's account that are not applied toward the purchase of Shares on a Purchase Date due to limitations imposed by the Plan shall be returned to the participant. 


        10.    Voluntary Withdrawal; Termination of Employment.    



        (a)   A
participant may withdraw all but not less than all the Contributions credited to his or her account under the Plan at any time prior to a Purchase Date by submitting a
completed "Notice of Withdrawal" form to the Company's Human Resources Department or electronically completing the required documentation provided by the Company through the Designated Broker, as
directed by the Company's Human Resources Department. All of the participant's Contributions credited to his or her account will be paid to him or her promptly after receipt of his or her notice of
withdrawal and his or her option for the current period will be automatically terminated, and no further Contributions for the purchase of Shares will be made during the Offering Period. 


        (b)   Upon
termination of the participant's Continuous Status as an Employee prior to the Purchase Date of an Offering Period for any reason, whether voluntary or involuntary,
including retirement or death, the Contributions credited to his or her account will be returned to him or her or, in the case of his or her death, to the person or persons entitled thereto under
Section 14, and his or her option will be automatically terminated. 



        (c)   In
the event an Employee fails to remain in Continuous Status as an Employee of the Company for at least twenty (20) hours per week during the Offering Period in
which the Employee is a participant, he or she will be deemed to have elected to withdraw from the Plan and the Contributions credited to his or her account will be returned to him or her and his or
her option will be terminated. 



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        (d)   A
participant's withdrawal from an offering will not have any effect upon his or her eligibility to participate in a succeeding offering or in any similar plan that may
hereafter be adopted by the Company. 




        11.    Interest.    No interest shall accrue on the Contributions of a participant in the
Plan. 


        12.    Stock.    



        (a)   Subject
to adjustment as provided in Section 18, the maximum number of Shares that shall be made available for sale under the Plan shall be 250,000 Shares. If the
Board determines that, on a given Purchase Date, the number of Shares with respect to which options are to be exercised may exceed (1) the number of Shares that were available for sale under
the Plan on the Offering Date of the applicable Offering Period, or (2) the number of Shares available for sale under the Plan on such Purchase Date, the Board may in its sole discretion
provide (x) that the Company shall make a pro rata allocation of the Shares available for purchase on such Offering Date or Purchase Date, as applicable, in as uniform a manner as shall be
practicable and as it shall determine in its sole discretion to be equitable among all participants exercising options to purchase Common Stock on such Purchase Date,
and continue the Plan as then in effect, or (y) that the Company shall make a pro rata allocation of the Shares available for purchase on such Offering Date or Purchase Date, as applicable, in
as uniform a manner as shall be practicable and as it shall determine in its sole discretion to be equitable among all participants exercising options to purchase Common Stock on such Purchase Date,
and terminate the Plan pursuant to Section 19 below. The Company may make a pro rata allocation of the Shares available on the Offering Date of any applicable Offering Period pursuant to the
preceding sentence, notwithstanding any authorization of additional Shares for issuance under the Plan by the Company's stockholders subsequent to such Offering Date. 



        (b)   The
participant shall have no interest or voting right in Shares covered by his or her option until such option has been exercised. 


        (c)   Shares
to be delivered to a participant under the Plan will be registered in the name of the participant or in the name of the participant and his or her spouse. 




        13.    Administration.    The Board, or a committee named by the Board, shall supervise and
administer the Plan and shall have full power to adopt, amend and rescind any rules deemed desirable and appropriate for the administration of the Plan and not inconsistent with the Plan, to construe
and interpret the Plan, and to make all other determinations necessary or advisable for the administration of the Plan. 


        14.    Designation of Beneficiary.    



        (a)   A
participant may designate a beneficiary who is to receive any Shares and cash, if any, from the participant's account under the Plan in the event of such participant's
death subsequent to the end of an Offering Period but prior to delivery to him or her of such Shares and cash. In addition, a participant may designate a beneficiary who is to receive any cash from
the participant's account under the Plan in the event of such participant's death prior to the Purchase Date of an Offering Period. If a participant is married and the designated beneficiary is not
the spouse, spousal consent shall be required for such designation to be effective. Beneficiary designations under this Section 14(a) shall be made as directed by the Human Resources Department
of the Company, which may require electronic submission of the required documentation with the Designated Broker. 


        (b)   Such
designation of beneficiary may be changed by the participant (and his or her spouse, if any) at any time by submission of the required notice, which required notice
may be electronic. In the event of the death of a participant and in the absence of a beneficiary validly designated 



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under
the Plan who is living at the time of such participant's death, the Company shall deliver such Shares and/or cash to the executor or administrator of the estate of the participant, or if no such
executor or administrator has been appointed (to the knowledge of the Company), the Company, in its discretion, may deliver such Shares and/or cash to the spouse or to any one or more dependents or
relatives of the participant, or if no spouse, dependent or relative is known to the Company, then to such other person as the Company may designate. 




        15.    Transferability.    Neither Contributions credited to a participant's account nor any
rights with regard to the exercise of an option or to receive Shares under the Plan may be assigned, transferred, pledged or otherwise disposed of in any way (other than by will, the laws of descent
and distribution, or as provided in Section 14) by the participant. Any such attempt at assignment, transfer, pledge or other disposition shall be without effect, except that the Company may
treat such act as an election to withdraw funds in accordance with Section 10. 



        16.    Use of Funds.    All Contributions received or held by the Company under the Plan may
be used by the Company for any corporate purpose, and the Company shall not be obligated to segregate such Contributions. 


        17.    Reports.    Individual accounts will be maintained for each participant in the Plan.
Statements of account will be provided to participating Employees by the Company or the Designated Broker at least annually, which statements will set forth the amounts of Contributions, the per Share
Purchase Price, the number of Shares purchased and the remaining cash balance, if any. 



        18.    Adjustments Upon Changes in Capitalization; Corporate Transactions.    



        (a)   Adjustment.    Subject to any required action by the stockholders of the Company, the number of Shares covered
by each option under the Plan that has not yet been exercised, the number of Shares that have been authorized for issuance under the Plan but have not yet been placed under option (collectively, the
"Reserves"), the maximum number of Shares of Common Stock that may be purchased by a participant in an Offering Period, the number of Shares of Common Stock set forth in Section 12(a) above,
and the price per Share of Common Stock covered by each option under the Plan that has not yet been exercised, shall be proportionately adjusted for any increase or decrease in the number of issued
Shares resulting from a stock split, reverse stock split, stock dividend, combination or reclassification of the Common Stock (including any such change in the number of Shares of Common Stock
effected in connection with a change in domicile of the Company), or any other increase or decrease in the number of Shares effected without receipt of consideration by the Company; provided
however that conversion of any convertible securities of the Company shall not be deemed to have been "effected without receipt of consideration." Such adjustment shall be made by the Board, whose
determination in that respect shall be final, binding and conclusive. Except as expressly provided herein, no issue by the Company of shares of stock of any class, or securities convertible into
shares of stock of any class, shall affect, and no adjustment by reason thereof shall be made with respect to, the number or price of Shares subject to an option. 


        (b)   Corporate Transactions.    In the event of a dissolution or liquidation of the Company, any Offering Period
then in progress will terminate immediately prior to the consummation of such action, unless otherwise provided by the Board. In the event of a Corporate Transaction, each option outstanding under the
Plan shall be assumed or an equivalent option shall be substituted by the successor corporation or a parent or Subsidiary of such successor corporation. The Board may determine, in its sole and
absolute discretion, that in the alternative, each Offering Period then in progress shall be shortened and a new Purchase Date shall be set (the "New Purchase Date"), as of which date any Offering
Period then in progress will terminate. The New Purchase Date shall be on or before the date of consummation of the transaction and the Board shall notify each participant in writing, at least ten
(10) days prior to the New Purchase Date, that the Purchase 



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Date
for his or her option has been changed to the New Purchase Date and that his or her option will be exercised automatically on the New Purchase Date, unless prior to such date he or she has
withdrawn from the Offering Period as provided in Section 10. For purposes of this Section 18, an option granted under the Plan shall be deemed to be assumed, without limitation, if, at
the time of issuance of the stock or other consideration upon a Corporate Transaction, each holder of an option under the Plan would be entitled to receive upon exercise of the option the same number
and kind of shares of stock or the same amount of property, cash or securities as such holder would have been entitled to receive upon the occurrence of the transaction if the holder had been,
immediately prior to the transaction, the holder of the number of Shares of Common Stock covered by the option at such time (after giving effect to any adjustments in the number of Shares covered by
the option as provided for in this Section 18); provided however that if the consideration received in the transaction is not solely common stock of the successor corporation or its parent (as
defined in Section 424(e) of the Code), the Board may, with the consent of the successor corporation, provide for the consideration to be received upon exercise of the option to be solely
common stock of the successor corporation or its parent equal in Fair Market Value to the per Share consideration received by holders of Common Stock in the transaction. 




        The
Board may, if it so determines in the exercise of its sole discretion, also make provision for adjusting the Reserves, as well as the price per Share of Common Stock covered by each
outstanding option, in the event that the Company effects one or more reorganizations, recapitalizations, rights offerings or other increases or reductions of Shares of its outstanding Common Stock,
and in the event of the Company's being consolidated with or merged into any other corporation. 


        19.    Amendment or Termination.    



        (a)   The
Board may at any time and for any reason terminate or amend the Plan. Except as provided in Section 18, no such termination of the Plan may affect options
previously granted, provided that the Plan or an Offering Period may be terminated by the Board on a Purchase Date or by the Board's setting a new Purchase Date with respect to an Offering Period then
in progress if the Board determines that termination of the Plan and/or the Offering Period is in the best interests of the Company and the stockholders or if continuation of the Plan and/or the
Offering Period would cause the Company to incur adverse accounting charges as a result of a change after the effective date of the Plan in the generally accepted accounting rules applicable to the
Plan. Except as provided in Section 18 and in this Section 19, no amendment to the Plan shall make any change in any option previously granted that adversely affects the rights of any
participant. In addition, to the extent necessary to comply with Rule 16b-3 under the Exchange Act, or under Section 423 of the Code (or any successor rule or provision or
any applicable law or regulation), the Company shall obtain stockholder approval in such a manner and to such a degree as so required. 


        (b)   Without
stockholder consent and without regard to whether any participant rights may be considered to have been adversely affected, the Board (or its committee) shall be
entitled to change the Offering Periods, limit the frequency and/or number of changes in the amount withheld during an Offering Period, establish the exchange ratio applicable to amounts withheld in a
currency other than U.S. dollars, permit payroll withholding in excess of the amount designated by a participant in order to adjust for delays or mistakes in the Company's processing of properly
completed withholding elections, establish reasonable waiting and adjustment periods and/or accounting and crediting procedures to ensure that amounts applied toward the purchase of Common Stock for
each participant properly correspond with amounts withheld from the participant's Compensation, and establish such other limitations or procedures as the Board (or its committee) determines in its
sole discretion are advisable that are consistent with the Plan. 



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        20.    Notices.    All notices or other communications by a participant to the Company under
or in connection with the Plan shall be deemed to have been duly given when received in the form specified by the Company at the location, or by the person, designated by the Company for the receipt
thereof. 


        21.    Conditions Upon Issuance of Shares.    Shares shall not be issued with respect to an
option unless the exercise of such option and the issuance and delivery of such Shares pursuant thereto shall comply with all applicable provisions of law, domestic or foreign, including, without
limitation, the Securities Act of 1933, as amended, the Exchange Act, the rules and regulations promulgated thereunder, applicable state and foreign securities laws and the requirements of any stock
exchange upon which the Shares may then be listed, and shall be further subject to the approval of counsel for the Company with respect to such compliance. 



        As
a condition to the exercise of an option, the Company may require the person exercising such option to represent and warrant at the time of any such exercise that the Shares are being
purchased
only for investment and without any present intention to sell or distribute such Shares if, in the opinion of counsel for the Company, such a representation is required by any of the aforementioned
applicable provisions of law. 


        22.    Term of Plan; Effective Date.    The Plan shall become effective upon approval by the
Company's stockholders. It shall continue in effect for a term of 10 years unless sooner terminated under Section 19. 



        23.    Additional Restrictions of Rule 16b-3.    The terms and conditions
of options granted hereunder to, and the purchase of Shares by, persons subject to Section 16 of the Exchange Act shall comply with the applicable provisions of Rule 16b-3.
The Plan shall be deemed to contain, and such options shall contain, and the Shares issued upon exercise thereof shall be subject to, such additional conditions and restrictions as may be required by
Rule 16b-3 to qualify for the maximum exemption from Section 16 of the Exchange Act with respect to Plan transactions. 


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MOVIE GALLERY, INC.    
    
    2003 EMPLOYEE STOCK PURCHASE PLAN
  SUBSCRIPTION AGREEMENT    
    


New
Election              


Change
of Election              


        1.     I,                        ,
hereby elect to participate in the Movie Gallery, Inc. 2003 Employee Stock Purchase Plan (the "Plan") for the Offering
Period                        ,
            to                             
       and subscribe to purchase shares of the Company's Common Stock in accordance with this Subscription Agreement and the Plan. 


        2.     I
elect to have Contributions in the amount of    % of my Compensation, as those terms are defined in the Plan, applied to this purchase. I understand that this
amount must not be less than 1% and not more than 10% of my Compensation during the Offering Period. (Please note that no fractional percentages are permitted). 


        3.     I
hereby authorize payroll deductions from each paycheck during the Offering Period at the rate stated in Item 2 of this Subscription Agreement. I understand that all
payroll deductions made by me shall be credited to my account under the Plan and that I may not make any additional payments into such account. I understand that all payments made by me shall be
accumulated for the purchase of shares of Common Stock at the applicable purchase price determined in accordance with the Plan. I further understand that, except as otherwise set forth in the Plan,
shares will be purchased for me automatically on the Purchase Date of each Offering Period unless my employment is terminated prior to the Purchase Date or I otherwise withdraw from the Plan by giving
written notice to the Company for such purpose. 


        4.     I
understand that I may discontinue at any time prior to the Purchase Date my participation in the Plan as provided in Section 10 of the Plan. I also understand
that I can increase or decrease the rate of my Contributions on one occasion only with respect to each rate change during any Offering Period by completing and filing a new Subscription Agreement with
such increase or decrease taking effect as of the beginning of the payroll period following the date of filing of the new Subscription Agreement, if filed at least five (5) business days prior
to the beginning of such payroll period. Further, I may change the rate of deductions for future Offering Periods by filing a new Subscription Agreement, and any such change will be effective as of
the beginning of the next Offering Period. In addition, I acknowledge that, unless I discontinue my participation in the Plan as provided in Section 10 of the Plan, my election will continue to
be effective for each successive Offering Period. 


        5.     I
have received a copy of the Company's most recent description of the Plan and a copy of the complete "Movie Gallery, Inc. 2003 Employee Stock Purchase Plan." I
understand that my participation in the Plan is in all respects subject to the terms of the Plan. 


        6.     Shares
purchased for me under the Plan should be issued in the name(s) of (name of employee or employee and spouse
only):



	 	 	 
	 	 	

	 	 	 
	 	 	

	 	 	 




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        7.     In
the event of my death, I hereby designate the following as my beneficiary(ies) to receive all payments and shares due to me under the
Plan:



	NAME: (Please print)	 	 	 	 	 	 
	 	 	

	 	 	(First)	 	(Middle)	 	(Last)
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	
 (Relationship)	 	
 (Address)
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	






        8.     I
understand that if I dispose of any shares received by me pursuant to the Plan within 2 years after the Offering Date (the first day of the Offering Period
during which I purchased such shares) or within 1 year after the Purchase Date, I will be treated for federal income tax purposes as having received ordinary compensation income at the time of
such disposition in an amount equal to the excess of the fair market value of the shares on the Purchase Date over the price that I paid for the shares, regardless of whether I disposed of the shares
at a price less than their fair market value at the Purchase Date. The remainder of the gain or loss, if any, recognized on such disposition will be treated as capital gain or loss. 



        I hereby agree to notify the Company in writing within 30 days after the date of any such disposition, and I will make adequate provision for federal,
state or other tax withholding obligations, if any, that arise upon the disposition of the Common Stock. The Company may, but will not be obligated to, withhold from my
compensation the amount necessary to meet any applicable withholding obligation including any withholding necessary to make available to the Company any tax deductions or benefits attributable to the
sale or early disposition of Common Stock by me. 


        9.     If
I dispose of such shares at any time after expiration of the 2-year and 1-year holding periods, I understand that I will be treated for federal
income tax purposes as having received compensation income only to the extent of an amount equal to the lesser of (1) the excess of the fair market value of the shares at the time of such
disposition over the purchase price that I paid for the shares under the option, or (2) 15% of the fair market value of the shares on the Offering Date. The remainder of the gain or loss, if
any, recognized on such disposition will be treated as capital gain or loss. 


        I understand that this tax summary is only a summary and is subject to change. I further understand that I should consult a tax advisor
concerning the tax implications of the purchase and sale of stock under the Plan. 


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        10.   I
hereby agree to be bound by the terms of the Plan. The effectiveness of this Subscription Agreement is dependent upon my eligibility to participate in the Plan. 



	 	 	 	 	 
	SIGNATURE:	 	 	 	 
	 	 	
	 	 





	 	 	 	 	 
	SOCIAL SECURITY #:	 	 	 	 
	 	 	
	 	 





	 	 	 	 	 
	DATE:	 	 	 	 
	 	 	
	 	 
	 	 	 	 	 
	SPOUSE'S SIGNATURE (necessary

if beneficiary is not spouse):	 	 
	 	 	 	 	 
	 	 	 	 	 
	
 (Signature)	 	 
	 	 	 	 	 
	 	 	 	 	 
	
 (Print name)	 	 




13





 
 
 

MOVIE GALLERY, INC.    
    
    2003 EMPLOYEE STOCK PURCHASE PLAN    
    
    NOTICE OF WITHDRAWAL    
    


        I,                        , hereby elect to withdraw my
participation in the Movie Gallery, Inc. 2003 Employee Stock Purchase Plan (the "Plan") for the Offering
Period that began on                                    ,
            . This withdrawal covers all Contributions credited to my account and is effective on the date designated below. 


        I
understand that all Contributions credited to my account will be paid to me within ten (10) business days of receipt by the Company of this Notice of Withdrawal and that my
option for the current period will automatically terminate, and that no further Contributions for the purchase of shares can be made by me during the Offering Period. 



        I
further understand and agree that I shall be eligible to participate in succeeding offering periods only by delivering to the Company a new Subscription Agreement. 



	Dated:	 	 	 	 
	 	 	
	 	
 Signature of Employee
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	
 Social Security Number




14





 
 
 

AMENDMENT TO THE MOVIE GALLERY, INC.
  2003 EMPLOYEE STOCK PURCHASE PLAN    
    


        This Amendment to the Movie Gallery, Inc. 2003 Employee Stock Purchase Plan (this Amendment") is effective as of this 18th day of September, 2003, with
reference to the following facts: 



        A.    The
stockholders of Movie Gallery, Inc. (the "Company") duly and validly approved the 2003 Employee Stock Purchase Plan of the Company (the "Plan") at the Annual
Meeting of Stockholders of the Company held on June 11, 2003 in Atlanta, Georgia. 


        B.    Subsequent
to the Annual Meeting of Stockholders, the Board of Directors of the Company determined that certain non-material amendments should be made to the
Plan in the best interests of the Company and its stockholders. 



        C.    At
a duly noticed meeting of the Board of Directors held on September 18, 2003, at which a quorum of Directors was present, the Board of Directors voted
unanimously to amend the Plan as set forth herein. 




        The
Plan is hereby amended as follows: 



	1.
	Section 8. Section 8 of the Plan is hereby deleted in its entirety and replaced with the following: 






"Exercise of Option. Unless a participant withdraws from the Plan as provided in Section 10, his or her option for the purchase of Shares will be
exercised automatically on each Purchase Date of an Offering Period, and the maximum number of Shares subject to the option (including, if necessary, fractional Shares) will be purchased at the
applicable Purchase Price with the full amount of the accumulated Contributions in his or her account. The Shares purchased upon exercise of an option hereunder shall be deemed to be transferred to
the participant on the Purchase Date. During his or her lifetime, a participant's option to purchase Shares hereunder is exercisable only by him or her." 





	 	 	MOVIE GALLERY, INC.
	 	 	 	 	 
	 	 	 	 	 
	 	 	By:	 	/s/  S. PAGE TODD      
 Name:  S. Page Todd

Title:    Executive Vice President




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QuickLinks


MOVIE GALLERY, INC. 2003 EMPLOYEE STOCK PURCHASE PLAN


MOVIE GALLERY, INC. 2003 EMPLOYEE STOCK PURCHASE PLAN SUBSCRIPTION AGREEMENT

MOVIE GALLERY, INC. 2003 EMPLOYEE STOCK PURCHASE PLAN NOTICE OF WITHDRAWAL

AMENDMENT TO THE MOVIE GALLERY, INC. 2003 EMPLOYEE STOCK PURCHASE PLAN