diff --git a/tcp_tests/templates/cookied-bm-mcp-dvr-vxlan/underlay--user-data1604-hwe.yaml b/tcp_tests/templates/cookied-bm-mcp-dvr-vxlan/underlay--user-data1604-hwe.yaml
new file mode 100644
index 0000000..f4d3775
--- /dev/null
+++ b/tcp_tests/templates/cookied-bm-mcp-dvr-vxlan/underlay--user-data1604-hwe.yaml
@@ -0,0 +1,100 @@
+| # All the data below will be stored as a string object
+  #cloud-config, see http://cloudinit.readthedocs.io/en/latest/topics/examples.html
+
+  ssh_pwauth: True
+  users:
+   - name: root
+     sudo: ALL=(ALL) NOPASSWD:ALL
+     shell: /bin/bash
+     ssh_authorized_keys:
+     {% for key in config.underlay.ssh_keys %}
+      - ssh-rsa {{ key['public'] }}
+     {% endfor %}
+
+  disable_root: false
+  chpasswd:
+   list: |
+    root:r00tme
+   expire: False
+
+  bootcmd:
+   # Block access to SSH while node is preparing
+   - cloud-init-per once sudo iptables -A INPUT -p tcp --dport 22 -j DROP
+   # Enable root access
+   - sed -i -e '/^PermitRootLogin/s/^.*$/PermitRootLogin yes/' /etc/ssh/sshd_config
+   - service sshd restart
+  output:
+    all: '| tee -a /var/log/cloud-init-output.log /dev/tty0'
+
+  runcmd:
+   - export TERM=linux
+   - export LANG=C
+   # Configure dhclient
+   - sudo echo "nameserver {gateway}" >> /etc/resolvconf/resolv.conf.d/base
+   - sudo resolvconf -u
+
+   # Enable grub menu using updated config below
+   - update-grub
+
+   # Prepare network connection
+   - sudo ifup {interface_name}
+   #- sudo route add default gw {gateway} {interface_name}
+
+   # Create swap
+   - fallocate -l 4G /swapfile
+   - chmod 600 /swapfile
+   - mkswap /swapfile
+   - swapon /swapfile
+   - echo "/swapfile   none    swap    defaults   0   0" >> /etc/fstab
+
+
+   ############## TCP Cloud cfg01 node ##################
+   #- sleep 120
+   - echo "Preparing base OS"
+   - echo "nameserver 172.18.208.44" > /etc/resolv.conf;
+   - echo "nameserver 8.8.8.8" >> /etc/resolv.conf;
+   - which wget >/dev/null || (apt-get update; apt-get install -y wget)
+
+   # Configure Ubuntu mirrors
+   - echo "deb [arch=amd64] http://mirror.mirantis.com/{{ REPOSITORY_SUITE }}/ubuntu/ xenial main restricted universe" > /etc/apt/sources.list
+   - echo "deb [arch=amd64] http://mirror.mirantis.com/{{ REPOSITORY_SUITE }}/ubuntu/ xenial-updates main restricted universe" >> /etc/apt/sources.list
+   - echo "deb [arch=amd64] http://mirror.mirantis.com/{{ REPOSITORY_SUITE }}/ubuntu/ xenial-security main restricted universe" >> /etc/apt/sources.list
+
+   - echo "deb [arch=amd64] http://apt.mirantis.com/xenial {{ REPOSITORY_SUITE }} salt extra" > /etc/apt/sources.list.d/mcp_salt.list;
+   - wget -O - http://apt.mirantis.com/public.gpg | apt-key add -;
+   - echo "deb http://repo.saltstack.com/apt/ubuntu/16.04/amd64/2016.3 xenial main" > /etc/apt/sources.list.d/saltstack.list;
+   - wget -O - https://repo.saltstack.com/apt/ubuntu/16.04/amd64/2016.3/SALTSTACK-GPG-KEY.pub | apt-key add -;
+
+   - apt-get clean
+   - eatmydata apt-get update && apt-get -y upgrade
+
+   # Install common packages
+   - eatmydata apt-get install -y python-pip git curl tmux byobu iputils-ping traceroute htop tree mc
+
+   # Install salt-minion and stop it until it is configured
+   - eatmydata apt-get install -y salt-minion && service salt-minion stop
+
+   # Install latest kernel
+   - eatmydata apt-get install -y {{ os_env('LINUX_KERNEL_HWE_PACKAGE_NAME', 'linux-image-extra-4.10.0-42-generic') }}
+
+   ########################################################
+   # Node is ready, allow SSH access
+   #- echo "Allow SSH access ..."
+   #- sudo iptables -D INPUT -p tcp --dport 22 -j DROP
+   - reboot
+   ########################################################
+
+  write_files:
+   - path: /etc/default/grub.d/97-enable-grub-menu.cfg
+     content: |
+         GRUB_RECORDFAIL_TIMEOUT=30
+         GRUB_TIMEOUT=3
+         GRUB_TIMEOUT_STYLE=menu
+
+   - path: /etc/network/interfaces
+     content: |
+          # The loopback network interface
+          auto lo
+          iface lo inet loopback
+          auto {interface_name}
+          iface {interface_name} inet dhcp
\ No newline at end of file
diff --git a/tcp_tests/templates/cookied-bm-mcp-dvr-vxlan/underlay--user-data1604.yaml b/tcp_tests/templates/cookied-bm-mcp-dvr-vxlan/underlay--user-data1604.yaml
index b7508f4..1176d0d 100644
--- a/tcp_tests/templates/cookied-bm-mcp-dvr-vxlan/underlay--user-data1604.yaml
+++ b/tcp_tests/templates/cookied-bm-mcp-dvr-vxlan/underlay--user-data1604.yaml
@@ -74,14 +74,10 @@
    # Install salt-minion and stop it until it is configured
    - eatmydata apt-get install -y salt-minion && service salt-minion stop
 
-   # Install latest kernel
-   - eatmydata apt-get install -y linux-generic-hwe-16.04
-
    ########################################################
    # Node is ready, allow SSH access
-   #- echo "Allow SSH access ..."
-   #- sudo iptables -D INPUT -p tcp --dport 22 -j DROP
-   - reboot
+   - echo "Allow SSH access ..."
+   - sudo iptables -D INPUT -p tcp --dport 22 -j DROP
    ########################################################
 
   write_files:
diff --git a/tcp_tests/templates/cookied-bm-mcp-dvr-vxlan/underlay.yaml b/tcp_tests/templates/cookied-bm-mcp-dvr-vxlan/underlay.yaml
index a68021f..a1d6090 100644
--- a/tcp_tests/templates/cookied-bm-mcp-dvr-vxlan/underlay.yaml
+++ b/tcp_tests/templates/cookied-bm-mcp-dvr-vxlan/underlay.yaml
@@ -23,6 +23,7 @@
 {% import 'cookied-bm-mcp-dvr-vxlan/underlay--meta-data.yaml' as CLOUDINIT_META_DATA with context %}
 {% import 'cookied-bm-mcp-dvr-vxlan/underlay--user-data-cfg01.yaml' as CLOUDINIT_USER_DATA_CFG01 with context %}
 {% import 'cookied-bm-mcp-dvr-vxlan/underlay--user-data1604.yaml' as CLOUDINIT_USER_DATA_1604 with context %}
+{% import 'cookied-bm-mcp-dvr-vxlan/underlay--user-data1604-hwe.yaml' as CLOUDINIT_USER_DATA_1604_HWE with context %}
 
 ---
 aliases:
@@ -30,6 +31,7 @@
  - &cloudinit_meta_data {{ CLOUDINIT_META_DATA }}
  - &cloudinit_user_data_cfg01 {{ CLOUDINIT_USER_DATA_CFG01 }}
  - &cloudinit_user_data_1604 {{ CLOUDINIT_USER_DATA_1604 }}
+ - &cloudinit_user_data_1604_hwe {{ CLOUDINIT_USER_DATA_1604_HWE }}
 
 template:
   devops_settings:
@@ -332,7 +334,7 @@
                              # for store image with cloud-init metadata.
 
                   cloudinit_meta_data: *cloudinit_meta_data
-                  cloudinit_user_data: *cloudinit_user_data_1604
+                  cloudinit_user_data: *cloudinit_user_data_1604_hwe
 
               interfaces:
                 - label: enp9s0f0
@@ -388,7 +390,7 @@
                              # for store image with cloud-init metadata.
 
                   cloudinit_meta_data: *cloudinit_meta_data
-                  cloudinit_user_data: *cloudinit_user_data_1604
+                  cloudinit_user_data: *cloudinit_user_data_1604_hwe
 
               interfaces:
                 - label: enp9s0f0
@@ -442,7 +444,7 @@
                              # for store image with cloud-init metadata.
 
                   cloudinit_meta_data: *cloudinit_meta_data
-                  cloudinit_user_data: *cloudinit_user_data_1604
+                  cloudinit_user_data: *cloudinit_user_data_1604_hwe
 
               interfaces:
                 - label: enp2s0f0
@@ -489,7 +491,7 @@
                              # for store image with cloud-init metadata.
 
                   cloudinit_meta_data: *cloudinit_meta_data
-                  cloudinit_user_data: *cloudinit_user_data_1604
+                  cloudinit_user_data: *cloudinit_user_data_1604_hwe
 
               interfaces:
                 - label: enp2s0f0