Linux system hangs giving ntp errors

Hi folks,
I am facing issue of my system (host1) getting hanged after throwing following ntpd messages. I am not able to ssh to the server there after. only option is to restart the host:
Dec 29 02:58:51 host1 ntpd[991]: time reset -0.207907 s
Dec 29 02:58:51 host1 ntpd[991]: synchronisation lost
Dec 29 04:20:20 host1 ntpd[991]: time reset 1.018233 s
Dec 29 04:20:20 host1 ntpd[991]: synchronisation lost
Dec 29 04:35:44 host1 ntpd[991]: time reset -0.468052 s
Dec 29 04:35:44 host1 ntpd[991]: synchronisation lost
Dec 29 08:27:47 host1 ntpd[991]: time reset 0.249744 s
Dec 29 08:27:47 host1 ntpd[991]: synchronisation lost
Dec 29 11:42:50 host1 syslogd 1.4.1: restart.
Dec 29 11:42:50 host1 syslog: syslogd startup succeeded

I checked the time of my client(host1) which is getting hanged and the ntp server and found that both are having same time.
ntpq -p output gives following:
[root@host1 log]# ntpq -p
remote refid st t when poll reach delay offset jitter

*server1.example.c server02.exampl 4 u 976 1024 377 0.701 10.092 0.886

[root@host1 log]# ntpstat
synchronised to NTP server (172.15.16.167) at stratum 5
time correct to within 99 ms
polling server every 1024 s

Please advice. Thanks in advance.