diff --git a/apps/fwd/src/main/java/org/onlab/onos/fwd/ReactiveForwarding.java b/apps/fwd/src/main/java/org/onlab/onos/fwd/ReactiveForwarding.java
index 5857438..1accddb 100644
--- a/apps/fwd/src/main/java/org/onlab/onos/fwd/ReactiveForwarding.java
+++ b/apps/fwd/src/main/java/org/onlab/onos/fwd/ReactiveForwarding.java
@@ -26,9 +26,7 @@
 import org.onlab.onos.net.packet.PacketContext;
 import org.onlab.onos.net.packet.PacketProcessor;
 import org.onlab.onos.net.packet.PacketService;
-import org.onlab.onos.net.proxyarp.ProxyArpService;
 import org.onlab.onos.net.topology.TopologyService;
-import org.onlab.packet.ARP;
 import org.onlab.packet.Ethernet;
 import org.slf4j.Logger;
 
@@ -55,9 +53,6 @@
     @Reference(cardinality = ReferenceCardinality.MANDATORY_UNARY)
     protected FlowRuleService flowRuleService;
 
-    @Reference(cardinality = ReferenceCardinality.MANDATORY_UNARY)
-    protected ProxyArpService proxyArpService;
-
     private ReactivePacketProcessor processor = new ReactivePacketProcessor();
 
     private ApplicationId appId;
@@ -65,7 +60,7 @@
     @Activate
     public void activate() {
         appId = ApplicationId.getAppId();
-        packetService.addProcessor(processor, PacketProcessor.ADVISOR_MAX + 1);
+        packetService.addProcessor(processor, PacketProcessor.ADVISOR_MAX + 2);
         log.info("Started with Application ID {}", appId.id());
     }
 
@@ -93,16 +88,6 @@
 
             InboundPacket pkt = context.inPacket();
             Ethernet ethPkt = pkt.parsed();
-            if (ethPkt.getEtherType() == Ethernet.TYPE_ARP) {
-                ARP arp = (ARP) ethPkt.getPayload();
-                if (arp.getOpCode() == ARP.OP_REPLY) {
-                    proxyArpService.forward(ethPkt);
-                } else if (arp.getOpCode() == ARP.OP_REQUEST) {
-                    proxyArpService.reply(ethPkt);
-                }
-                context.block();
-                return;
-            }
 
             HostId id = HostId.hostId(ethPkt.getDestinationMAC());
 
@@ -181,24 +166,24 @@
         // We don't yet support bufferids in the flowservice so packet out first.
         packetOut(context, portNumber);
 
-        if (context.inPacket().parsed().getEtherType() == Ethernet.TYPE_IPV4) {
 
-            // Install the flow rule to handle this type of message from now on.
-            Ethernet inPkt = context.inPacket().parsed();
-            TrafficSelector.Builder builder = DefaultTrafficSelector.builder();
-            builder.matchEthType(inPkt.getEtherType())
-                .matchEthSrc(inPkt.getSourceMAC())
-                .matchEthDst(inPkt.getDestinationMAC())
-                .matchInport(context.inPacket().receivedFrom().port());
 
-            TrafficTreatment.Builder treat = DefaultTrafficTreatment.builder();
-            treat.setOutput(portNumber);
+        // Install the flow rule to handle this type of message from now on.
+        Ethernet inPkt = context.inPacket().parsed();
+        TrafficSelector.Builder builder = DefaultTrafficSelector.builder();
+        builder.matchEthType(inPkt.getEtherType())
+        .matchEthSrc(inPkt.getSourceMAC())
+        .matchEthDst(inPkt.getDestinationMAC())
+        .matchInport(context.inPacket().receivedFrom().port());
 
-            FlowRule f = new DefaultFlowRule(context.inPacket().receivedFrom().deviceId(),
-                    builder.build(), treat.build(), PRIORITY, appId, TIMEOUT);
+        TrafficTreatment.Builder treat = DefaultTrafficTreatment.builder();
+        treat.setOutput(portNumber);
 
-            flowRuleService.applyFlowRules(f);
-        }
+        FlowRule f = new DefaultFlowRule(context.inPacket().receivedFrom().deviceId(),
+                builder.build(), treat.build(), PRIORITY, appId, TIMEOUT);
+
+        flowRuleService.applyFlowRules(f);
+
     }
 
 }
diff --git a/apps/pom.xml b/apps/pom.xml
index 010c531..27a1f2f 100644
--- a/apps/pom.xml
+++ b/apps/pom.xml
@@ -21,6 +21,7 @@
         <module>fwd</module>
         <module>foo</module>
         <module>mobility</module>
+        <module>proxyarp</module>
 	    <module>config</module>
     </modules>
 
diff --git a/apps/proxyarp/pom.xml b/apps/proxyarp/pom.xml
new file mode 100644
index 0000000..4051d19
--- /dev/null
+++ b/apps/proxyarp/pom.xml
@@ -0,0 +1,19 @@
+<?xml version="1.0" encoding="UTF-8"?>
+<project xmlns="http://maven.apache.org/POM/4.0.0"
+         xmlns:xsi="http://www.w3.org/2001/XMLSchema-instance"
+         xsi:schemaLocation="http://maven.apache.org/POM/4.0.0 http://maven.apache.org/maven-v4_0_0.xsd">
+    <modelVersion>4.0.0</modelVersion>
+
+    <parent>
+        <groupId>org.onlab.onos</groupId>
+        <artifactId>onos-apps</artifactId>
+        <version>1.0.0-SNAPSHOT</version>
+        <relativePath>../pom.xml</relativePath>
+    </parent>
+
+    <artifactId>onos-app-proxyarp</artifactId>
+    <packaging>bundle</packaging>
+
+    <description>ONOS simple proxy arp module</description>
+
+</project>
diff --git a/apps/proxyarp/src/main/java/org/onlab/onos/proxyarp/ProxyArp.java b/apps/proxyarp/src/main/java/org/onlab/onos/proxyarp/ProxyArp.java
new file mode 100644
index 0000000..a06470f
--- /dev/null
+++ b/apps/proxyarp/src/main/java/org/onlab/onos/proxyarp/ProxyArp.java
@@ -0,0 +1,70 @@
+package org.onlab.onos.proxyarp;
+
+import static org.slf4j.LoggerFactory.getLogger;
+
+import org.apache.felix.scr.annotations.Activate;
+import org.apache.felix.scr.annotations.Component;
+import org.apache.felix.scr.annotations.Deactivate;
+import org.apache.felix.scr.annotations.Reference;
+import org.apache.felix.scr.annotations.ReferenceCardinality;
+import org.onlab.onos.ApplicationId;
+import org.onlab.onos.net.packet.PacketContext;
+import org.onlab.onos.net.packet.PacketProcessor;
+import org.onlab.onos.net.packet.PacketService;
+import org.onlab.onos.net.proxyarp.ProxyArpService;
+import org.slf4j.Logger;
+
+/**
+ * Sample reactive proxy arp application.
+ */
+@Component(immediate = true)
+public class ProxyArp {
+
+
+    private final Logger log = getLogger(getClass());
+
+    @Reference(cardinality = ReferenceCardinality.MANDATORY_UNARY)
+    protected PacketService packetService;
+
+    @Reference(cardinality = ReferenceCardinality.MANDATORY_UNARY)
+    protected ProxyArpService proxyArpService;
+
+    private ProxyArpProcessor processor = new ProxyArpProcessor();
+
+    private ApplicationId appId;
+
+    @Activate
+    public void activate() {
+        appId = ApplicationId.getAppId();
+        packetService.addProcessor(processor, PacketProcessor.ADVISOR_MAX + 1);
+        log.info("Started with Application ID {}", appId.id());
+    }
+
+    @Deactivate
+    public void deactivate() {
+        packetService.removeProcessor(processor);
+        processor = null;
+        log.info("Stopped");
+    }
+
+
+    /**
+     * Packet processor responsible for forwarding packets along their paths.
+     */
+    private class ProxyArpProcessor implements PacketProcessor {
+
+        @Override
+        public void process(PacketContext context) {
+            // Stop processing if the packet has been handled, since we
+            // can't do any more to it.
+            if (context.isHandled()) {
+                return;
+            }
+
+            //handle the arp packet.
+            proxyArpService.handleArp(context);
+        }
+    }
+}
+
+
diff --git a/apps/proxyarp/src/main/java/org/onlab/onos/proxyarp/package-info.java b/apps/proxyarp/src/main/java/org/onlab/onos/proxyarp/package-info.java
new file mode 100644
index 0000000..3f7da98
--- /dev/null
+++ b/apps/proxyarp/src/main/java/org/onlab/onos/proxyarp/package-info.java
@@ -0,0 +1,4 @@
+/**
+ * Proxy Arp  application that handles arp resolution for you.
+ */
+package org.onlab.onos.proxyarp;
diff --git a/core/api/src/main/java/org/onlab/onos/net/proxyarp/ProxyArpService.java b/core/api/src/main/java/org/onlab/onos/net/proxyarp/ProxyArpService.java
index 4ee43c7..77d1208 100644
--- a/core/api/src/main/java/org/onlab/onos/net/proxyarp/ProxyArpService.java
+++ b/core/api/src/main/java/org/onlab/onos/net/proxyarp/ProxyArpService.java
@@ -1,5 +1,6 @@
 package org.onlab.onos.net.proxyarp;
 
+import org.onlab.onos.net.packet.PacketContext;
 import org.onlab.packet.Ethernet;
 import org.onlab.packet.IpPrefix;
 
@@ -33,4 +34,12 @@
      */
     void forward(Ethernet eth);
 
+    /**
+     * Handles a arp packet.
+     * Replies to arp requests and forwards request to the  right place.
+     * @param context the packet context to handle
+     * @return true if handled, false otherwise.
+     */
+    boolean handleArp(PacketContext context);
+
 }
diff --git a/core/net/src/main/java/org/onlab/onos/net/flow/impl/FlowRuleManager.java b/core/net/src/main/java/org/onlab/onos/net/flow/impl/FlowRuleManager.java
index ae6a81d..182e210 100644
--- a/core/net/src/main/java/org/onlab/onos/net/flow/impl/FlowRuleManager.java
+++ b/core/net/src/main/java/org/onlab/onos/net/flow/impl/FlowRuleManager.java
@@ -158,7 +158,7 @@
             checkValidity();
             FlowRule stored = store.getFlowRule(flowRule);
             if (stored == null) {
-                log.debug("Rule already evicted from store: {}", flowRule);
+                log.info("Rule already evicted from store: {}", flowRule);
                 return;
             }
             Device device = deviceService.getDevice(flowRule.deviceId());
@@ -247,8 +247,12 @@
                 idleTime.put(swRule, currentTime);
                 return true;
             }
-            return (currentTime - idleTime.get(swRule)) <= timeout;
 
+            if ((currentTime - idleTime.get(swRule)) <= timeout) {
+                idleTime.put(swRule, currentTime);
+                return true;
+            }
+            return false;
         }
 
         // Posts the specified event to the local event dispatcher.
diff --git a/core/net/src/main/java/org/onlab/onos/net/proxyarp/impl/ProxyArpManager.java b/core/net/src/main/java/org/onlab/onos/net/proxyarp/impl/ProxyArpManager.java
index 3570948..0da2733 100644
--- a/core/net/src/main/java/org/onlab/onos/net/proxyarp/impl/ProxyArpManager.java
+++ b/core/net/src/main/java/org/onlab/onos/net/proxyarp/impl/ProxyArpManager.java
@@ -31,6 +31,8 @@
 import org.onlab.onos.net.link.LinkListener;
 import org.onlab.onos.net.link.LinkService;
 import org.onlab.onos.net.packet.DefaultOutboundPacket;
+import org.onlab.onos.net.packet.InboundPacket;
+import org.onlab.onos.net.packet.PacketContext;
 import org.onlab.onos.net.packet.PacketService;
 import org.onlab.onos.net.proxyarp.ProxyArpService;
 import org.onlab.packet.ARP;
@@ -155,6 +157,23 @@
 
     }
 
+    @Override
+    public boolean handleArp(PacketContext context) {
+        InboundPacket pkt = context.inPacket();
+        Ethernet ethPkt = pkt.parsed();
+        if (ethPkt.getEtherType() == Ethernet.TYPE_ARP) {
+            ARP arp = (ARP) ethPkt.getPayload();
+            if (arp.getOpCode() == ARP.OP_REPLY) {
+                forward(ethPkt);
+            } else if (arp.getOpCode() == ARP.OP_REQUEST) {
+                reply(ethPkt);
+            }
+            context.block();
+            return true;
+        }
+        return false;
+    }
+
     /**
      * Flood the arp request at all edges in the network.
      * @param request the arp request.
@@ -321,7 +340,6 @@
 
         }
 
-}
-
+    }
 
 }
diff --git a/features/features.xml b/features/features.xml
index 68fa8c3..0afafec 100644
--- a/features/features.xml
+++ b/features/features.xml
@@ -121,11 +121,17 @@
     </feature>
 
     <feature name="onos-app-mobility" version="1.0.0"
-             description="ONOS sample forwarding application">
+             description="ONOS sample mobility application">
         <feature>onos-api</feature>
         <bundle>mvn:org.onlab.onos/onos-app-mobility/1.0.0-SNAPSHOT</bundle>
     </feature>
 
+    <feature name="onos-app-proxyarp" version="1.0.0"
+             description="ONOS sample proxyarp application">
+        <feature>onos-api</feature>
+        <bundle>mvn:org.onlab.onos/onos-app-proxyarp/1.0.0-SNAPSHOT</bundle>
+    </feature>
+
 
 
     <feature name="onos-app-foo" version="1.0.0"
diff --git a/providers/openflow/flow/src/main/java/org/onlab/onos/provider/of/flow/impl/FlowRuleBuilder.java b/providers/openflow/flow/src/main/java/org/onlab/onos/provider/of/flow/impl/FlowRuleBuilder.java
index 70727d3..028e857 100644
--- a/providers/openflow/flow/src/main/java/org/onlab/onos/provider/of/flow/impl/FlowRuleBuilder.java
+++ b/providers/openflow/flow/src/main/java/org/onlab/onos/provider/of/flow/impl/FlowRuleBuilder.java
@@ -82,10 +82,9 @@
             // TODO: revisit potentially.
             return new DefaultFlowRule(DeviceId.deviceId(Dpid.uri(dpid)),
                     buildSelector(), null, removed.getPriority(),
-                    FlowRuleState.REMOVED, stat.getDurationSec(),
+                    FlowRuleState.REMOVED, removed.getDurationSec(),
                     removed.getPacketCount().getValue(), removed.getByteCount().getValue(),
-                    removed.getCookie().getValue(),
-                    stat.getIdleTimeout());
+                    removed.getCookie().getValue(), removed.getIdleTimeout());
         }
     }