Crosstex Material Adverse Effect Clause Samples

The "Crosstex Material Adverse Effect" clause defines what constitutes a significant negative impact on Crosstex's business, assets, or financial condition. In practice, this clause sets specific thresholds or criteria for events or changes—such as substantial losses, regulatory actions, or major contract breaches—that would be considered materially adverse. Its core function is to allocate risk between parties by clarifying when a material adverse event has occurred, which can trigger rights such as termination or renegotiation of the agreement.