The Court held that the terms of the Distribution agreement between Blackmon and Mary Kay were unambiguous. The agreement specified that all rights of a distributor terminate when the agreement is terminated, including the right to receive profits from a distributor's downline. According to the contract this benefit existed only while the distributor agreement was in place. When Blackmon was terminated for promoting travel vouchers alongside her Mary Kay products, she lost the rights to her downline stream of income.

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