Liabilities of Diamond Power Sports were addressed in the Agreement between the companies as follows:
Repeat #3
"Elliott has eliminated all liabilities listed on Exhibit A and there are no unknown liabilities and/or threatened litigation or claims against DPWS. In the event liabilities are discovered after Closing, any liability that arose while Elliot was in control of DPWS shall be paid for by Elliot and shall be the sole responsibility of Elliot."