SETTLEMENT AGREEMENT

Exhibit 10.14

SETTLEMENT AGREEMENT

This Settlement Agreement is effective as of June 9, 2006, and memorializes the settlement reached during mediation on June 9, 2006.

1. Definitions. The following terms shall have the indicated meanings:

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change the state of Liberty’s organization so long as the resulting company is obligated to perform Liberty’s obligations under this Agreement, and (ii) any transaction whose primary purpose is to create a holding company that will be owned in substantially the same proportions by the persons who held Liberty’s securities immediately before such transaction, so long as the holding company and Liberty are jointly and severally liable for Liberty’s obligations under this Agreement.

2. Conveyance to Liberty and Termination of Agreements. The REC Parties and each of them convey to Liberty any and all rights, title, and/or other ownership interest in and to Liberty, including without limitation, any rights in and to the Ethanol Refinery, which any of them has, had or has ever had, if any. In so conveying, each of the REC Parties represents that they have not transferred or pledged any such interest to any other person, such that the transfer herein is made free and clear of any liens, claims, or encumbrances of any person. Further, any and all agreements, undertakings, understandings, agreements, duties, contracts, and/or commitments, related to the Ethanol Refinery and/or related to any of the REC Parties’ and REC Affiliates’ actual or claimed ownership, development, management or other claimed rights and obligations regarding Liberty, between on the one hand, Liberty and any Liberty Affiliates, and on the other hand, the REC Parties and any REC Affiliates, is hereby cancelled, terminated and rescinded for all purposes including without limitation, the 2/10 Document and those certain Nondisclosure and Noncompete Agreements executed by any of the REC Affiliates, examples of which are attached as exhibits to the Complaint.

3. Payment to REC Parties. Liberty will pay to the REC Parties the following sums at the indicated times. All funds shall be paid by check, made payable to REC, as Trustee for the REC Parties, and REC shall be solely responsible for delivery of funds to any of the REC Parties as their interests shall appear. Liberty has no responsibility for the further division of payments as among the REC Parties.

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without limitation any and all claims which were asserted or could have been asserted in the Lawsuit. Without limiting the generality of the foregoing, the REC Parties and each of them, do hereby release Liberty Released Parties from any responsibility and/or liability for any real or claimed breach of the 2/10 Document, and from any responsibility, liability, or right to future performance with respect to such instrument.

5. Letter to REC. Upon execution of this Agreement, Liberty shall execute and deliver to REC the letter attached hereto as Exhibit A.

6. Confidentiality and Non-Competition. Simultaneous with the execution hereof, Liberty and the REC, Mark Bateman, Rick Chesak and Cyndi Brearley shall enter into a Limited Confidentiality and Limited Non-Compete Agreement, which shall be delivered simultaneously with the execution hereof.

7. Miscellaneous.

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statement to any other person that tends to disparage an opposing Party or to cast that person or entity in a negative light. The only statement that will be made regarding this litigation is that Liberty has repurchased any interests or rights that REC Parties may have had in Liberty, and that the Parties have resolved the case to their mutual satisfaction. Provided, however, that required disclosures to the Internal Revenue Service, Securities and Exchange Commission, any other governmental regulatory agency, and statements made in connection with accounting characterizations of these transactions, are not encompassed by the prohibition above. Further provided that the letter attached as Exhibit A to this Settlement Agreement, and referenced in Paragraph 5, (five) of this Agreement, also is not encompassed by the prohibition above.

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court, agency or arbitrator to effectuate the original intent of the Parties to the maximum degree possible.

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EXHIBIT A

June 23, 2006

Mr. Mark Bateman

Renewable Energy Consultants, LLC

P.O. Box 468

Kewanna, IN 46939

Mr. Richard Chesak

Renewable Energy Consultants, LLC

P.O. Box 468

Kewanna, IN 46939

Re: Letter of Appreciation

Dear Mark and Rick:

Oh behalf of the Board of Directors of Liberty Renewable Fuels, LLC, including myself, we would like to express our appreciation for the work you have done to help Liberty on its path of developing an ethanol production facility in Michigan.

Since the initial meetings in which you were a part and the completion of the PRX feasibility study which was also ordered by REC, the project has become a feasible business opportunity. We also greatly appreciate all the efforts of Cyndi during all the board meetings. Through your efforts, and the subsequent efforts of the Board of Directors of Liberty, the dream of constructing an ethanol production facility is on its way of becoming a reality.

It is perhaps natural for differences to arise as a project of this scope progresses. As those differences surfaced, REC and Liberty made good faith efforts to resolve those differences. The Board and I are very pleased that we were able to reach an amicable agreement with you to fully resolve those differences.

In conclusion, your past efforts on behalf of Liberty are greatly appreciated. We wish you every success in your future business endeavors.