diff --git a/CHANGELOG.md b/CHANGELOG.md
index 82238ca..691d604 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -1,5 +1,8 @@
 ## [0.6.4](https://github.com/fgrehm/vagrant-lxc/compare/v0.6.3...master) (unreleased)
 
+IMPROVEMENTS:
+
+  - Make `lxc-template` compatible with Ubuntu 13.10 [#150](https://github.com/fgrehm/vagrant-lxc/issues/150)
 
 ## [0.6.3](https://github.com/fgrehm/vagrant-lxc/compare/v0.6.2...v0.6.3) (Oct 12, 2013)
 
diff --git a/boxes/common/lxc-template b/boxes/common/lxc-template
index 877a005..202d068 100755
--- a/boxes/common/lxc-template
+++ b/boxes/common/lxc-template
@@ -40,8 +40,8 @@ extract_rootfs()
     rootfs=$3
 
     echo "Extracting $tarball ..."
-    mkdir -p $(dirname $rootfs)
-    (cd `dirname $rootfs` && tar xfz $tarball)
+    mkdir -p $rootfs
+    (cd $rootfs && tar xfz $tarball --strip-components=2)
     return 0
 }