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Exhibit 3.20
LIMITED LIABILITY COMPANY AGREEMENT
OF
HSN FULFILLMENT LLC
THIS LIMITED LIABILITY COMPANY AGREEMENT ("Agreement") is made
effective as of the 3rd day of February, 1998, by and between HOME SHOPPING
NETWORK, INC., a Delaware corporation d/b/a The Home Shopping Network, as the
sole member ("Member"), and HSN FULFILLMENT LLC, a Delaware limited liability
company, and shall be binding upon such other individuals and members as may be
added pursuant to the terms of this Agreement.
1. Formation Of The Company. By execution of this Agreement, Member
ratifies and confirms the action of Xxxxx X. XxXxxxx, Esquire, as its duly
authorized agent in connection with the filing of a certificate of formation
(the "Certificate") with the Secretary of the State of the State of Delaware for
the purpose of forming HSN Fulfillment LLC (the "Company"), a limited liability
company formed under the Delaware Limited Liability Company Act, 6 Del. C.
Section 18-101, et seq. ("Act").
2. Name Of The Company. The name of the company to be stated in the
Certificate and the limited liability company governed by this Agreement shall
be "HSN Fulfillment LLC."
3. Purpose. This Company is formed for the object and purpose of, and
the nature of the business to be conducted and promoted by the Company is,
engaging in any lawful act or activity for which limited liability companies may
be formed under the Act and engaging in any and all activities necessary or
incidental to the foregoing.
4. Registered Office; Registered Agent. The registered office of the
Company in the State of Delaware is located at Corporation Trust Center, 0000
Xxxxxx Xxxxxx, Xxxxxxxxxx, Xxx Xxxxxx Xxxxxx, Xxxxxxxx 00000 and the registered
agent of the Company at such address is The Corporation Trust Company.
5. Units. A member's interests in the Company ("Units") shall for all
purposes be personal property. No holder of Units or member shall have any
interest in specific Company assets or property, including assets or property
contributed to the Company by such member as a part of any capital contribution.
The Units are securities governed by Article 8 of the Uniform Commercial Code as
in effect in the State of New York.
6. Capital Contributions By The Sole Member. In consideration of the
issuance of one hundred (100) Units in the Company to Member, Member shall
hereafter cause the merger of HSN Fulfillment, Inc. with and into the Company
with the Company to be the surviving limited liability company. Except for the
foregoing consideration, Member shall not be obligated to make capital
contributions to the Company and all Units issued to Member shall be
nonassessable.
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7. Capital Accounts. A separate capital account shall be maintained for
each member and such capital accounts shall be maintained in accordance with the
provisions of Section 704 of the Internal Revenue Code of 1986, as amended (the
"Code"), and the Treasury Regulations promulgated thereunder.
8. Allocation of Profits and Losses. The Company's profits and losses
shall be allocated among the members in proportion to the number of Units held
by each member. It is the intent of the members that each member's distributive
share of income, gain, loss, deduction, or credit (or item thereof) shall be
determined and allocated in accordance with this Paragraph 8 to the fullest
extent permitted by Sections 704(b) and (c) of the Code and the Treasury
Regulations promulgated thereunder.
9. Distributions. Distributions shall be made to the members at the
times and in the aggregate amounts determined by the Manager. Such distributions
shall be allocated among the members in proportion to the number of Units held
by each member.
10. Appointment and Removal of Manager. At any time, and from time to
time, the member or members holding a majority of the Units in the Company may
elect one or more individuals or entities to manage the Company (the "Manager").
The Manager shall be responsible for any and all such duties as the member(s)
may choose to confer upon the Manager in this Agreement. By execution of this
Agreement, Member hereby appoints USANi LLC, a Delaware limited liability
company, as initial Manager of the Company. A Manager (whether an initial or a
successor Manager) shall cease to be a Manager upon the earlier of (i) such
Manager's resignation or (ii) such Manager's removal pursuant to the affirmative
vote of the member or members holding a majority of the Units. Any vacancy in
the Manager position, whether occurring as a result of a Manager resigning or
being removed may be filled by appointment of a successor by the member or
members holding a majority of the Units in accordance with this Paragraph 10. A
Manager need not be a member or resident of the State of Delaware.
11. Management Powers Of The Manager. Except for powers specifically
reserved to the members by this Agreement (if any) or by non-waivable provisions
of applicable law, as provided herein, the Company shall be managed by the
Manager, as authorized agent of the Company. The Manager shall have the full,
exclusive, and absolute right, power, and authority to manage and control the
Company and the property, assets, and business thereof. Subject to the
restrictions specifically contained in this Agreement, the Manager may make all
decisions and take all actions for the Company not otherwise provided for in
this Agreement, including, without limitation, the following decisions:
(a) Execution of an agreement of merger to cause the merger of
HSN Fulfillment, Inc., Home Shopping Network Outlets, Inc., HSN Mail Order, Inc.
and HSN Transportation, Inc. with and into the Company, with the Company as the
surviving
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limited liability company (the "Corporate Merger");
(b) Execution and required filing of any agreements,
instruments or documents, including, without limitation, a certificate of
merger, necessary to effect the Corporate Merger; and
(c) Performance of any and all other acts Manager may deem
necessary or appropriate to Company's business.
12. Officers. The officers of the Company shall be appointed by the
Manager and shall include a President, a Secretary, a Treasurer, and such other
officers as the Manager from time to time may deem proper. Unless the Manager
decides otherwise, all officers so designated shall each have such powers and
duties as generally pertain to their respective corresponding offices in a
corporation incorporated under the Delaware General Corporation Law. Such
officers shall also have such powers and duties as from time to time may be
conferred by the Manager. The Manager or the President may from time to time
appoint such other officers (including one (1) or more Vice Presidents,
Assistant Secretaries and Assistant Treasurers) and such agents, as may be
necessary or desirable for the conduct of the business of the Company. Such
other officers and agents shall have such duties and shall hold their offices
for such terms as shall be prescribed by the Manager or by the President, as the
case may be. Any number of titles may be held by the same person. Each officer
shall hold office until his or her successor shall be duly designated and shall
qualify or until his or her death, until he or she shall resign, or until he or
she shall have been removed, either with or without cause, by Manager whenever,
in Manager's judgment, the best interests of the Company will be served thereby.
The salaries or other compensation, if any, of the officers and agents of the
Company shall be fixed by Manager. Any delegation pursuant to this Paragraph 12
may be revoked at any time by Manager. As of the date hereof, Xxxxxxx X. Xxxxxxx
shall be President, Xxx X. Xxxxxxx shall be Treasurer and Secretary, H. Xxxxxx
Xxxxxxxx shall be Assistant Secretary, Xxxxxxx Xxxx shall be Assistant
Treasurer, and Xxxx X. Xxxxx shall be Assistant Treasurer.
13. Limitations On Authority. The authority of Manager over the conduct
of the affairs of the Company shall be subject only to such limitations as are
expressly stated in this Agreement or in the Act.
14. Dissolution. The Company shall dissolve, and its affairs shall be
wound up upon the first to occur of the following: (a) the written consent of
the members, or (b) the entry of a decree of judicial dissolution under Section
18-802 of the Act.
15. Transferability of Interests. A member may not assign in whole or
in part its Units without the consent of all of the other members and provided
that the transferee of such Units shall be bound by the terms of this Agreement.
Notwithstanding the first sentence of this Paragraph 15, any member may transfer
its Units to USANi LLC,
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USANi Sub LLC or HSN General Partner LLC, each a Delaware limited liability
company (collectively, "Permitted Transferee"), without the consent of the other
members. Upon any such transfer to a Permitted Transferee, the Permitted
Transferee shall be admitted as a member and shall be bound by the terms of this
Agreement. Nothing herein shall restrict the ability of any member to pledge its
Units to secure indebtedness (including guarantee indebtedness) in respect of
that certain credit agreement among USA Networks, Inc., USANi LLC, the lenders
party thereto, the Chase Manhattan Bank, as administrative agent, Bank of
America National Trust & Savings Association and The Bank of New York, as
co-documentation agents, or any renewal, extension, replacement or refinancing
thereof.
16. Admission of Additional Members. Except as provided in Paragraph
15, one (1) or more additional members of the Company may be admitted to the
Company with the consent of all of the members.
17. Consents. Any action that may be taken by the members at a meeting
may be taken without a meeting if a consent in writing, setting forth the action
so taken, is signed by or on behalf of the member or members holding sufficient
Units to authorize or approve such action at such meeting.
18. Amendments. Except as otherwise provided in this Agreement, this
Agreement may be amended only by an affirmative vote of the member or members
holding a majority of the Units.
19. Governing Law. This Agreement and shall be construed and enforced
in accordance with, and governed by, the laws of the State of Delaware.
20. Counterparts. This Agreement may be executed in one or more
counterparts, each of which shall be deemed an original and all of which
together, shall constitute one and the same Agreement.
21. Tax Elections. The Manager shall have the power to cause the
Company to make all elections required or permitted to be made for income tax
purposes.
{Signature Page Follows}
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IN WITNESS WHEREOF, the parties hereto have made this Agreement
effective as of the date and year first above-written.
HSN FULFILLMENT LLC
BY: USANi LLC, AS MANAGER
By: /s/ Xxxxx X. Xxxxxxxxx
________________________________
Name: Xxxxx X. Xxxxxxxxx
Title: Manager
Member:
HOME SHOPPING NETWORK, INC.
By: /s/ Xxxxx X. Xxxxxxxxx
________________________________
Name: Xxxxx X. Xxxxxxxxx
Title: Executive Vice President,
General Counsel and
Secretary
