Exhibit 10.13

NOTICE OF CONVERSION

In consideration of $4,000.00 paid to the holder hereof and the issuance of a promissory note of the Corporation of $48,000.00 to the holder substantially in the form attached hereto as Exhibit A, along with a waiver of all dividend rights relating to the Dividend Period subsequent to March 30, 2013, the undersigned holder does hereby elect to convert 16 shares of 15% Series A1 Convertible Preferred Stock (“Series AI Preferred Stock”) into 100,800 shares of common stock of Arête Industries, Inc. Also, in consideration of the above, the undersigned also tenders back to the Company these 16 shares of Series A1 Preferred Stock, such shares to be cancelled.

 

HOLDER
By:   Burlingame Equity Investors II, LP
 

/s/ Blair Sanford

Name:   Blair Sanford
Title:   Managing Member of General Partner
Date:   June 28, 2013
ARÊTE INDUSTRIES, INC.
By:  

/s/ Nicholas Scheidt

  Nicholas Scheidt, President
Date:   June 28, 2013