Document:

Exhibit 4.5
                        SETTLEMENT AND RELEASE AGREEMENT

     This  Settlement  and  Release  Agreement (the "Agreement") is entered into
effective  April  30,  2003  by  and  between PROCERA NETWORKS, INC., a Delaware
corporation,  (the  "Company")  and _______________ ("Employee"). The Parties to
this  Agreement  are sometimes collectively referred to herein as the "Parties".

                                    RECITALS

          A.   Employee was hired by the Company on May 1, 2002 and was laid off
               by  the  Company  on  March  31,  2003.

          B.   Employee  contends  he is owed wages for services provided during
               his  period  of  employment.

                                    AGREEMENT

     For good and valuable consideration, the receipt and sufficiency of which
is hereby acknowledged, the Parties agree as follows:

     1.   INCORPORATION OF RECITALS.  The above Recitals are incorporated herein
by  this  reference.

     2.   CONSIDERATION.  In  consideration for the execution of this Agreement,
the  Company  shall,  on  or before May 12, 2003, pay the sum of $___________ in
cash  and  ___________  shares  of  the  Company's  common  stock  to  Employee.

     3.   RELEASES.

     (a)  Employee,  for  himself,  his  successors,  assigns and agents, hereby
acquits  and  forever releases, waives and discharges any and all claims, causes
of  action,  defenses  or  other rights of any kind, whether equitable or legal,
known or unknown, which he may have had, have now, or have in the future against
the  Company,  its  agents,  servants,  representatives,  directors,  employees,
officers,  shareholders, successors and assigns, arising out of or in connection
with  the  Released  Matters  or  otherwise.

     (b)  The  Company,  for  itself, its successors, assigns and agents, hereby
acquits  and  forever releases, waives and discharges any and all claims, causes
of  action,  defenses  or  other rights of any kind, whether equitable or legal,
known or unknown, which it may have had, have now, or have in the future against
Employee, his agents, servants, representatives, successors and assigns, arising
out  of  or  in  connection  with  the  Released  Matters  or  otherwise.

     (c)  Released  Matters.  The  releases  contained herein are intended to be
full  and  complete  releases  of the Parties from all liability relating to the
employment  of  Employee  with  the Company (referred to herein as the "Released
Matters"),  including  without  limitation:

<PAGE>
          (i)  any  compensation  paid  or  owed  to  Employee  and  all  claims
relating  to,  or arising from, Employee's right to purchase, or actual purchase
of  shares  of  stock  of  the  Company;

          (ii)  any  and all claims for wrongful discharge of employment; breach
of  contract,  both  express and implied; breach of a covenant of good faith and
fair  dealing,  both express and implied, negligent or intentional infliction of
emotional  distress;  negligent  or  intentional misrepresentation; negligent or
intentional  interference  with  contract  or  prospective  economic  advantage;
negligence;  and  defamation;

          (iii) any and all claims for violation of any federal, state or
municipal statute, including, but not limited to, Title VII of the Civil Rights
Act of 1964, the Civil Rights Act of 1981, the Age Discrimination in Employment
Act of  1967, the Americans with Disabilities Act of 1990, and the California
Fair Employment and Housing Act;

          (iv)  any and all claims arising out of any other laws and regulations
relating  to  employment  or  employment  discrimination;  and

          (v)  any  and  all  claims  for  attorneys'  fees  and  costs.

Employee  acknowledges  and  agrees  that  the  foregoing  enumeration of claims
released  is  illustrative, and the claims hereby released are in no way limited
by  the  above recitation of specific claims, it being the intent of the parties
to  fully  and  completely  release all claims whatsoever. This release does not
extend  to  any  obligations  incurred  under  this  Agreement.

     4.   WAIVER.  Each  party  represents  to the other that it understands the
meaning and effect of Section 1542 of the California Civil Code, which provides:

     A  GENERAL  RELEASE  DOES  NOT EXTEND TO CLAIMS WHICH THE CREDITOR DOES NOT
     KNOW OR SUSPECT TO EXIST IN HIS FAVOR AT THE TIME OF EXECUTING THE RELEASE,
     WHICH IF KNOWN BY HIM MUST HAVE MATERIALLY EFFECTED HIS SETTLEMENT WITH THE
     DEBTOR.

     The Parties hereto assume the risk of any and all unknown, unanticipated or
misunderstood  claims,  causes  of  action  or  other  rights  released  by this
Agreement,  and  they hereby expressly WAIVE and release all rights and benefits
                                       -----
which  they  might  otherwise  have  had under the above-quoted provision of the
California  Civil  Code or any other relevant statutory or common law provision.

     5.   REPRESENTATIONS  AND  WARRANTIES OF EMPLOYEE.  Employee has full power
and  authority  to  enter into this Agreement and the releases set forth herein.
This  Agreement  constitutes  the  valid  and  binding  obligation  of Employee,
enforceable  in  accordance  with  the  terms  hereof.

<PAGE>
     6.   MISCELLANEOUS.

          (A)  WARRANTY  OF  NON-ASSIGNMENT.  Each  party  hereto represents and
               ----------------------------
warrants  that  he,  or  it,  has  not  sold, transferred, conveyed, assigned or
hypothecated  any  of  the  rights,  claims or causes of action released herein.

          (B)  WARRANTY  OF  AUTHORIZED  SIGNATORIES.  Each  signatory  hereto
               -------------------------------------
warrants  and represents that he, she or it is competent and authorized to enter
into  this  Agreement  on behalf of the party for whom he, she or it purports to
sign, and that the Agreement is executed on behalf of a valid legal entity which
has the full right and authority to undertake or forbear any action contemplated
by  this Agreement.  Each signatory hereto agrees to indemnify and hold harmless
each  other  party hereto against any claim, suit or demand, including necessary
expenses  of  investigation  and  reasonable attorneys' fees, in which it may be
asserted  that  he,  she or it was not competent and/or so authorized to execute
this  Agreement  and  receive  the  consideration  therefore.

          (C)  COMPROMISE.  The  Agreement  is  the  result  of  a compromise of
               ----------
disputed  claims between the Parties and shall never at any time for any purpose
be  considered  an  admission  of liability or responsibility on the part of the
Parties herein released, nor shall the payment of any sum of money or other form
of  consideration for the execution of this Agreement constitute or be construed
as  an  admission  of  any  liability  whatsoever  by  any of the Parties herein
released  who  continue  to  deny  such  liability  and  to  disclaim  such
responsibility.

          (D)  ATTORNEYS'  FEES.  The  Parties hereto acknowledge and agree that
               ----------------
each  of  them  is  to  bear his, or its own costs, expenses and attorneys' fees
arising out of or connected with the negotiation, drafting and execution of this
Agreement,  and  all other matters arising out of or connected therewith, except
in  the  event any action is brought by any party hereto to enforce the terms of
this  Agreement, the prevailing party shall be entitled to reasonable attorneys'
fees  and  costs.

          (E)  GOVERNING LAW.  This Agreement shall be interpreted in accordance
               -------------
with  and  governed in all respects by California law.  Any dispute arising from
this  Agreement  shall  be  resolved  by  and  through  the American Arbitration
Association,  located  in  the  county  of  Santa  Clara,  California.

          (F)  SEVERABILITY.  If  any provision, or any part of any provision of
               ------------
this  Agreement  shall  for  any  reason be held to be invalid, unenforceable or
contrary to public policy or any law, then the remainder of this Agreement shall
not  be  affected  thereby.

          (G)  COUNTERPARTS.  This  Agreement  may  be executed in any number of
               ------------
counterparts  and  signature  pages  and  by  different  Parties  on  separate
counterparts  or  signature  pages each of which, when so executed and delivered
shall  be  an  original, and all such counterparts shall together constitute one
and  the  same  instrument.  It is the intention of the Parties hereto that this
Agreement  shall  have  absolutely no force or effect until all counterparts are
duly  executed  and  the effective date of this Agreement shall be the date upon
which  the  last  counterpart  is  executed.

<PAGE>
          (H)  ENTIRE  AGREEMENT.  This  Agreement  contains  the  entire
               -----------------
understanding  between  and  among the Parties with regard to the matters herein
set  forth,  and its terms are contractual and not merely recital.  There are no
representations,  warranties,  agreements,  arrangements,  undertakings, oral or
written,  between  or among the Parties hereto relating to the subject matter of
this  Agreement  which  are  not  fully  expressed  herein.

          (I)  MODIFICATION.  This  Agreement  may  not  be  altered,  amended,
               ------------
modified,  extended or otherwise changed in any respect or particular, except by
a writing executed by all of the Parties affected.  Any such modification of any
one  provision  shall  not  constitute a modification of any other provision not
expressly  modified.

     7.   CALIFORNIA  EVIDENCE  CODE SECTION 1152.  This Agreement and the terms
of  any  settlement offer made by the Company is governed by California Evidence
Code  Section 1152, and therefore are confidential and inadmissible in any legal
proceeding,  other  than  a  matter  arising  out  of  a dispute concerning this
Agreement.

     IN WITNESS WHEREOF, the undersigned have executed this release agreement as
of  the  date  set  forth  above.

THE COMPANY:                    PROCERA NETWORKS, INC.

                              By:____________________________
                                      Douglas J. Glader

                              Title:  CEO

                              [See Schedule 1]
EMPLOYEE:                     -------------------------------

                              Address:     ____________________________
                                           ____________________________

<PAGE>
<TABLE>
<CAPTION>
                                   SCHEDULE 1
                                   ----------

                 SIGNATORIES TO SETTLEMENT AND RELEASE AGREEMENT

SIGNATORY                                   DATE
-----------------------------------------  -------
<S>                                        <C>
Douglas J. Glader                          4/30/03
-----------------------------------------  -------
Jay R. Zerfoss                             4/30/03
-----------------------------------------  -------
Christopher Claudatos                      4/30/03
-----------------------------------------  -------
Magnus Hansen                              4/30/03
-----------------------------------------  -------
John McQuade                               4/30/03
-----------------------------------------  -------
Gregory Dewing                             4/30/03
-----------------------------------------  -------
Ravinder Pahwa                             4/30/03
-----------------------------------------  -------
John O'Shaughnessy                         4/30/03
-----------------------------------------  -------
Heidar Javadi                              4/30/03
-----------------------------------------  -------
Anthony Le                                 4/30/03
-----------------------------------------  -------
Keith Andrews                              4/30/03
-----------------------------------------  -------
Eric Glader                                4/30/03
-----------------------------------------  -------
Daniel Ching                               4/30/03
-----------------------------------------  -------
William Ge                                 4/30/03
-----------------------------------------  -------
Tai Nguyen                                 4/30/03
-----------------------------------------  -------
Sean Hou                                   4/30/03
-----------------------------------------  -------
Pieter Wiersma                             4/30/03
-----------------------------------------  -------
Nahid Amiri                                4/30/03
-----------------------------------------  -------
Henry Pham                                 4/30/03
-----------------------------------------  -------
Thanh Phan                                 4/30/03
-----------------------------------------  -------
Nai-Cheng Chao                             4/30/03
-----------------------------------------  -------
James Moon                                 4/30/03
-----------------------------------------  -------
</TABLE>

<PAGE>Exhibit 4.6

                             PROCERA NETWORKS, INC.
                             ----------------------

                       SECURED CONVERTIBLE PROMISSORY NOTE
                       -----------------------------------

$________________                                         ______________________
                                                           Sunnyvale, California

     1.   Principal and Interest.
          ----------------------

     1.1  PROCERA  NETWORKS,  INC.,  a Delaware Corporation (the "Company"), for
value received, hereby promises to pay to the order of _________________ or his,
her,  their  or  its  assigns  (the  "Investor"  or  the "Holder") the amount of
_______________________  dollars  ($_________)  plus  interest,  as  set  forth
hereinafter.

     1.2  This  Secured  Convertible  Promissory  Note  (the  "Note") shall bear
interest  from  the  date  of issuance of this Note until paid in full at a rate
equal  to one-half percent (1/2%) per month.  This Note shall be due and payable
on  Holder's  written  demand  which may be made on or after March 31, 2003 (the
"Demand  Date"),  and  shall  be paid pro rata with the other outstanding senior
creditors  set  forth  in  Exhibit  A  hereto  (the  "Outstanding Senior Secured
Creditors"), unless this Note is converted into shares of the Company's Series B
Preferred  Stock  (the  "Series  B  Preferred  Stock"),  pursuant to Section 2.1
hereof.  On  the Demand Date, all principal and accrued interest hereunder shall
be  due  and  payable  upon  demand  by  the  Holder.

     1.3  As  additional  consideration for this Note, the Holder shall received
from the date hereof until full repayment a monthly loan fee of one and one-half
percent (1  %) of the outstanding principal amount of this Note in cash, and two
percent  (2%)  of the outstanding principal amount of this Note in shares of the
Company's  common  stock.  For example, such shares for a loan of $100,000 shall
be calculated as follows:  $100,000 times 2% equals 2,000 shares of common stock
per month.  Commencing on the Demand Date, all loan fees accrued hereunder shall
be  immediately  due,  payable  and  issuable  to  the  Holder.

     1.4  This Note shall be secured by a senior security interest in all of the
assets  of  the  Company,  held  pro  rata  with  the outstanding Senior Secured
Creditors  and  solely  subordinate  to  senior  bank  financing, such assets to
include  but  not  be  limited  to  accounts  receivable,  proceeds from sale of
inventory,  owned  inventory,  equipment,  furniture,  patents,  trademarks  and
copyrights.

     1.5  Upon  conversion  of the principal and accrued interest hereunder into
the Company's Series B Preferred Stock pursuant to Section 2.3 hereof, this Note
shall  be  surrendered  to  the  Company  for  cancellation.

     1.6  Payments  of both principal, interest, and loan fees are to be made at
the address of the Holder set forth in Section 7 below or at such other place in
the  United  States  as the Holder shall designate to the Company in writing, in
lawful  money  of  the  United Sates of America.  Interest and loan fees on this
Note  shall  be computed on the basis of a 365-day year and actual days elapsed.

                                      -1-
<PAGE>
     1.7  The  provisions  of  this  Note  are  a statement of the rights of the
Holder and the conditions to which this Note is subject and to which the Holder,
by  the  acceptance  of  this  Note,  agrees.

     2.   Prepayment.  The  Company may pre-pay this Note, at any time, in whole
          ----------
or  in  part,  without  penalty.

     2.1  Conversion.  Upon  the consummation of the sale and issuance of shares
          ----------
of  Series  B Preferred Stock (the "Financing"), the Holder shall have the right
to  convert  the  outstanding  principal and all accrued interest hereunder into
that  number  of fully paid and nonassessable whole shares of Series B Preferred
Stock,  determined  in  accordance  with  Section  2.2  hereof  at  the Series B
Conversion  Price  (hereinafter  defined)  concurrently  with the closing of the
Financing.  Upon  conversion,  this  Note  shall  be  canceled.

     2.2  Shares  Issuable.
          ----------------

          (a)  The number of whole shares of Series B Preferred Stock into which
this  Note shall be converted pursuant to Section 2.1 hereof shall be determined
by  dividing  (i) the aggregate principal amount of this Note, together with all
accrued  interest  to  the  date  of conversion, by (ii) the Series B Conversion
Price.  The  Series  B  Conversion Price shall be equal to the purchase price of
Series  B  Preferred  Stock  as determined at the first closing of the Financing
(the  "Series  B  Conversion  Price").

          (b)  The  Series  B Preferred Stock shall be issued to the Holder upon
execution  of  a  Series  B Preferred Stock Purchase Agreement, identical to the
Series  B  Preferred  Stock  Purchase  Agreement  executed by all parties to the
Financing  together  with  all  documents  relating  thereto  (the  "Series  B
Documents"),  upon such terms and subject to such conditions as contained in the
Series  B  Documents.

     2.3  Conversion  Procedures.  In  the event Holder has not already demanded
          ----------------------
payment of the Note, within fifteen (15) business days of the Financing, written
notice  shall  be delivered to the Holder of this Note at the address last shown
on  the  records  of  the  Company  for the Holder or given by the Holder to the
Company for the purpose of notice or, if no such address appears or is given, at
the  place  where  the  principal  executive  office  of the Company is located,
notifying  the Holder that the Financing will be occurring, notifying the Holder
of  its  right,  at  such  Holder's  option, to convert this Note into shares of
Series  B  Preferred  Stock,  specifying  the  Series  B  Conversion  Price, the
principal  amount  of  the  Note and accrued interest that may be converted, and
calling  upon  such Holder to surrender the Note to the Company within the time,
in  the  manner  and  at  the place designated, or demand repayment of the Note,
including  all  accrued  and  unpaid  interest  thereon.

     2.4  Delivery  of Stock Certificates.  Upon the conversion of this Note and
          -------------------------------
return  of  the  original  Note  to  the Company together with executed Series B
Documents,  the  Company  at its expense will issue and deliver to the Holder of
this Note a certificate or certificates (bearing such legends as are required by
applicable  state  and  federal securities laws in the opinion of counsel to the
Company)  for  the  number  of whole shares of Series B Preferred Stock issuable
upon  such  conversion.

                                      -2-
<PAGE>
     2.5  No  Fractional  Shares.  No  fractional  shares  of Series B Preferred
          ----------------------
Stock  shall  be  issued  upon  conversion of this Note.  In lieu of the Company
issuing  any  fractional  shares to the Holder upon the conversion of this Note,
the  Company  shall  pay  to  the  Holder  the  amount  of outstanding principal
hereunder  that  is  not  so  converted.

     2.6  No  Rights  as  Stockholder.  This  Note  does  not entitle the Holder
          ---------------------------
hereof  to  any  voting  rights  or other rights as a shareholder of the Company
prior  to  the  conversion  hereof.

     2.7  Charges,  Taxes and Expenses.  Issuance of a certificate for shares of
          ----------------------------
the  Series  B  Preferred  Stock  upon the conversion of this Note shall be made
without  charge  to the Holder for any issue or transfer tax or other incidental
expense  in  respect of the issuance of such certificate, all of which taxes and
expenses  shall  be paid by the Company, and such certificate shall be issued in
the  name  of  the  Holder, or such certificates shall be issued in such name or
names  as  may  be  directed by the Holder; provided, however, that in the event
certificates  for shares of the Series B Preferred Stock (or replacement Notes),
are  to  be  issued  in a name other than the name of the Holder, this Note when
surrendered for exercise or transfer shall be accompanied by the Assignment Form
attached  hereto  duly  executed by the Holder; provided, further, that upon any
transfer  involved in the issuance or delivery of any certificates for shares of
the Series B Preferred Stock or replacement Notes, the Company may require, as a
condition  thereto,  the  payment  of  a  sum sufficient to reimburse it for any
transfer  tax  incidental  thereto.

     3.   Reservation  of  Stock Issuable Upon Conversion.  The Company shall at
          -----------------------------------------------
all  times  on  and  after  the  Financing,  reserve and keep available from its
authorized and unissued shares of Series B Preferred Stock (and shares of Common
Stock issuable upon conversion thereof), solely for the purpose of effecting the
conversion  of  the  Note, such number of its shares of Series B Preferred Stock
(and  shares  of  Common  Stock issuable upon conversion thereof), as shall from
time  to  time be sufficient to effect the conversion of the Note; and if at any
time  the  number  of authorized but unissued shares of Series B Preferred Stock
(or  shares  of its Common Stock issuable upon conversion thereof), shall not be
sufficient  to  effect the conversion of the entire outstanding principal amount
of  and  accrued  interest  on  this Note, in addition to such other remedies as
shall  be  available  to  the  Holder  of  this  Note,  the Company will use its
commercially  reasonable  efforts to promptly take such corporate action as may,
in  the  opinion  of  its  counsel,  be necessary to increase its authorized but
unissued  shares  of Series B Preferred (and shares of its Common Stock issuable
upon  conversion  thereof),  to such number of shares as shall be sufficient for
such  purposes.

     4.   Assignment.  Subject  to  the  restrictions  on  transfer described in
          ----------
Section  6  hereof,  the rights and obligations of the Company and the Holder of
this  Note  shall  be  binding  upon and benefit the successors, assigns, heirs,
administrators  and  transferees  of  the  parties.  Effective  upon  any  such
assignment,  the person or entity to whom such rights, interests and obligations
were  assigned shall have and exercise all of the Holder's rights, interests and
obligations  hereunder  as  if such person or entity were the original Holder of
this  Note.

     5.   Waiver  and  Amendment.  Any  provision  of  this Note may be amended,
          ----------------------
waived  or  modified  (either  generally  or  in  a  particular instance, either
retroactively  or  prospectively,  and  either for a specified period of time or
indefinitely),  upon  the  written  consent  of  the  Company  and  of  Holder.

                                      -3-
<PAGE>
     6.   Transfer  of  This  Note  or Securities Issuable on Conversion Hereof.
          ---------------------------------------------------------------------
With  respect to any offer, sale or other disposition of this Note or securities
into  which  this  Note may be converted, the Holder will give written notice to
the  Company  prior  thereto, describing briefly the manner thereof.  Unless the
Company  reasonably  determines  that  such  transfer  would  violate applicable
securities  laws,  or  that  such  transfer would adversely affect the Company's
ability  to  account for future transactions to which it is a party as a pooling
of  interests,  and  notifies  the  Holder thereof within ten (10) business days
after  receiving  notice  of  the transfer, the Holder may effect such transfer.
Each Note thus transferred and each certificate representing the securities thus
transferred  shall  bear  a  legend  as  to  the  applicable  restrictions  on
transferability  in  order to ensure compliance with the Securities Act of 1933,
as  amended  (the  "Securities  Act"),  unless in the opinion of counsel for the
Company  such  legend  is  not  required  in order to ensure compliance with the
Securities  Act.  The  Company  may  issue  stop  transfer  instructions  to its
transfer  agent  in  connection  with  such  restrictions.

     7.   Notices.  Any notice, request, other communication or payment required
          -------
or  permitted  hereunder  shall  be  in writing and shall be deemed to have been
given  upon  delivery  if  personally delivered, or five (5) business days after
deposit  if  deposited  in the United States mail for mailing by certified mail,
postage  prepaid,  and  addressed  as  follows:

         If to Investor:  at the address indicated on the signature page hereto.

          If to Company: Procera Networks, Inc.
                             1299 Orleans Drive
                            Sunnyvale, CA 94089
                         Attention: Jay Zerfoss
                    Telecopier:  (408) 744-6768

         With a copy to: Pillsbury Winthrop LLP
                            2550 Hanover Street
                      Palo Alto, CA  94304-1115
                        Attention: Bradley Kohn
                    Telecopier:  (650) 233-4545
                         Phone:  (650) 233-4500

Each of the above addressees may change its address for purposes of this Section
7  by  giving  to  the other addressee notice of such new address in conformance
with  this  Section  7.

     8.   Loss,  Theft  or  Destruction of Note.  Upon receipt by the Company of
          -------------------------------------
evidence reasonably satisfactory to it of the loss, theft or destruction of this
Note  and  of  indemnity  or security reasonably satisfactory to it, the Company
will  make  and deliver a new Note which shall carry the same rights to interest
(unpaid and to accrue) carried by this Note, stating that such Note is issued in
replacement  of  this Note, making reference to the original date of issuance of
this Note (and any successors hereto) and dated as of such cancellation, in lieu
of  this  Note.

                                      -4-
<PAGE>
     9.   Usury Disclosure.  Regardless of any provision contained in this Note,
          ----------------
it  is  expressly  stipulated  and  agreed that the intent of the Holder and the
Company is to comply at all times with all usury and other laws relating to this
Note.  If  the  laws  of  the  State of California would now or hereafter render
usurious,  or  are  revised,  repealed or judicially interpreted so as to render
usurious,  the  indebtedness evidenced by this Note, or if any prepayment by the
Company  results  in  the  Company's  having paid any interest in excess of that
permitted  by law, then it is the Holder's and the Company's express intent that
all  excess  amounts  theretofore  collected  by  the  Holder be credited to the
principal balance of this Note (or, if this Note has been paid in full, refunded
to  the Company), and the provisions of this Note immediately be deemed reformed
and the amounts therefor collectible hereunder reduced, without the necessity of
execution of any new document, so as to comply with the then applicable law, but
so  as  to  permit  the  recovery  of  the  fullest  amount otherwise called for
hereunder.

     10.  Governing  Law.  This  Note is being delivered in and for all purposes
          --------------
shall  be  construed in accordance with and governed by the laws of the State of
California,  without  regard  to  the  conflicts  of  laws  provisions  thereof.

     11.  Issue  Date.  The provisions of this Note shall be construed and shall
          -----------
be given effect in all respects as if this Note had been issued and delivered by
the  Company  on  the  earlier of the date hereof or the date of issuance of any
Note  for  which this Note is issued in replacement.  This Note shall be binding
upon  any  successors  or  assigns of the Company.  This Note shall constitute a
contract  under  the  laws  of  the  State  of  California.

     12.  Heading;  References.  All  headings  used  herein  are  used  for
          --------------------
convenience  only  and  shall  not  be  used to construe or interpret this Note.
Except  as  otherwise  indicated,  all  references  herein  to Sections refer to
Sections  hereof.

     13.  Waiver  by  the  Company.  The  Company  hereby waives demand, notice,
          ------------------------
presentment,  protest  and  notice  of  dishonor.

     14.  Delays.  No  delay  by  the  Holder  in  exercising any power or right
          ------
hereunder  shall  operate  as  a  waiver  of  any  power  or  right.

     15.  Severability.  If  one  or more provisions of this Note are held to be
          ------------
unenforceable  under  applicable law, such provision shall be excluded from this
Note  and the balance of the Note shall be interpreted as if such provision were
so  excluded  and  shall  be  enforceable  in  accordance  with  its  terms.

     16.  No  Impairment.  The  Company will not, by any voluntary action, avoid
          --------------
or  seek  to  avoid  the  observance  or  performance  of any of the terms to be
observed  or  performed  hereunder by the Company, but will at all times in good
faith  assist  in the carrying out of all the provisions of this Note and in the
taking of all such action as may be necessary or appropriate in order to protect
the  rights  of  the  Holder  of  this  Note  against  impairment.

                                      -5-
<PAGE>
     IN  WITNESS  WHEREOF,  PROCERA  NETWORKS,  INC.  has caused this Note to be
executed  in its corporate name and this Note to be dated, issued and delivered,
all  on  the  date  first  above  written.

                              PROCERA NETWORKS, INC.,
                              a Delaware corporation

                              By:     Douglas Glader

                              Title:  President & CEO

Accepted and Agreed to:

[See Schedule 1]
---------------------------------

                                      -6-
<PAGE>
                                 ASSIGNMENT FORM

                     (To Assign the foregoing Note, execute
                   this form and supply required information.
                   Do not use this form to convert the Note.)

     FOR  VALUE  RECEIVED,  an  interest  corresponding  to the unpaid principal
amount  of  the  foregoing  Note  and  all  rights  evidenced thereby are hereby
assigned  to

________________________________________________________________________________
                                 (Please Print)

                                                         whose address is_______

________________________________________________________________________________

                                     Dated:_

                      Holder's Signature:          ________

                      Holder's Address:            ________

                                                         Signature Guaranteed:

NOTE:     The signature to this Assignment Form must correspond with the name as
          it  appears on the face of the Note, without alteration or enlargement
          or  any  change  whatever,  and  must be guaranteed by a bank or trust
          company.  Officers  of corporations and those acting in a fiduciary or
          other representative capacity should file proper evidence of authority
          to  assign  the  foregoing  Note.

                                      -7-
<PAGE>
                                    EXHIBIT A
                                    ---------

                            PROCERA  NETWORKS,  INC.
                            ------------------------

                     OUTSTANDING  SENIOR  SECURED  CREDITORS
                     ---------------------------------------

Berg McAfee Companies, LLC

Christina Jones, an individual

The Minnis Living Trust DTD 3/5/97

Anthony Romano, an individual

Walter B. and Patricia E. Samuelson Trust DTD 5/25/96

William D. Smythe Revocable Living Trust DTD 5/15/87

                                      -8-
<PAGE>
<TABLE>
<CAPTION>
                                   SCHEDULE 1

                           SIGNATORIES TO BRIDGE LOAN

SIGNATORY                                                               DATE
--------------------------------------------------------------------  --------
<S>                                                                   <C>
Berg McAfee Companies LLC                                              7/31/03
--------------------------------------------------------------------  --------
Eric Mcafee                                                            7/31/03
--------------------------------------------------------------------  --------
Clyde Berg                                                             7/31/03
--------------------------------------------------------------------  --------
Christina Jones                                                        7/31/03
--------------------------------------------------------------------  --------
Elizabeth Rose                                                         8/26/03
--------------------------------------------------------------------  --------
Linden Growth Partners                                                12/15/03
--------------------------------------------------------------------  --------
The Minnis Living Trust DTD 3/05/97                                    8/15/03
--------------------------------------------------------------------  --------
Anthony Romano                                                         8/25/03
--------------------------------------------------------------------  --------
Walter B. and Patricia E. Samuelson Revocable Trust DTD May 25, 1996   8/20/03
--------------------------------------------------------------------  --------
W. D. Smythe Revocable Trust DTD 5/15/87                                8/8/03
--------------------------------------------------------------------  --------
Ravinder Sajwan                                                         8/6/03
--------------------------------------------------------------------  --------
Lyles Diversified, Inc.                                                8/22/03
--------------------------------------------------------------------  --------
Wil Lyles                                                              8/22/03
--------------------------------------------------------------------  --------
George Roberts                                                          8/6/03
--------------------------------------------------------------------  --------
</TABLE>

                                      -9-
<PAGE>

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00065-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00065-of-00352.parquet"}]]