In re: Service Merchandise Company, Inc., et al., Chapter 11, Debtors.

Jointly Administered Case No. 399-02649.United States Bankruptcy Court, M.D. Tennessee, Nashville Division.
May 10, 2004

Paul G. Jennings, Beth A. Dunning, BASS, BERRY SIMS PLC, Nashville, Tennessee, and John Wm. Butler, Jr., George N Panagakis, SKADDEN, ARPS, SLATE, MEAGHER FLOM (ILLINOIS), Chicago, IL, Attorneys for Debtors and Debtors-in-Possession.

CLOVER CORP., New York, NY, Representative for Claimant.

AGREED ORDER RESOLVING CONTESTED CLAIM NO. 3405 CLOVER CORPORATION
GEORGE PAINE, Chief Judge, Bankruptcy

Upon Service Merchandise Company, Inc. (“Service Merchandise,” or in reference to itself and its affiliates, the “Reorganized Debtors”) and Clover Corp. (the “Claimant”); having agreed, as signified by the signatures of counsel and authorized representative of the Claimant below, to a resolution of Claim No. 3405 (the “Claim”) on the terms set forth in this Agreed Order; and the court being otherwise sufficiently advised, it is hereby

ORDERED, ADJUDGED AND DECREED:

1. Claim No. 3405 shall be and hereby is ALLOWED as an allowed general prepetition non-priority unsecured claim in the aggregate amount of $183,438.46 (the “Allowed Amount”) against Service Merchandise Company, Inc. in Case No. 399-02649.

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2. Claim No. 3405 shall be and hereby is DISALLOWED to the extent it exceeds the Allowed Amount.

3. All distributions on account of the claim allowed by this Order are governed by the terms of the Reorganized Debtors’ confirmed chapter 11 plan, and any other actions to collect or enforce the claim allowed in this Order and/or any other claims against the Reorganized Debtors or against the assets of the Reorganized Debtors or any affiliate or insider of the Reorganized Debtors are prohibited by the plan and confirmation order entered May 13, 2003.

4. The Claimant shall have no other claims, whether secured, unsecured, prepetition, postpetition, administrative, priority or otherwise against the Reorganized Debtors or their estates.

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