Common use of Loss Contracts Clause in Contracts

Loss Contracts. There shall be no changes made to the provisions for loss contracts from those used in the preparation of the March 31, 2002 Balance Sheet, except to the extent that such changes are required by documented and substantiated changes in facts and events occurring after March 31, 2002 and on or before the Balance Sheet Date and are not solely the result of changes in management estimates. It is further understood that loss contract reserves for contract bids and proposals and unexercised contract options of the Company that were in a loss position and outstanding at March 31, 2002 and which are awarded or exercised during the period between March 31, 2002 through and including the Balance Sheet Date shall be accrued and included in the Pre-Closing Date Balance Sheet.