Item 1.01 Entry into a Material Definitive Agreement.
On October 15, 2008, the Amended and Restated Loan and Security Agreement dated May 8, 2003 (the "Agreement") by and between I-Flow Corporation (the "Company") and Silicon Valley Bank ("SVB"), which was renewed by an amendment to the Agreement dated as of August 6, 2008, expired by its terms. On December 18, 2008, the Company entered into an amendment to the Agreement with SVB effective as of December 18, 2008 (the "Amendment"), which extended the term of the Agreement to December 17, 2009. Pursuant to the terms of the Amendment, SVB has agreed to provide the Company with a $20 million revolving credit facility. The line of credit facility bears interest at one percentage point above SVB's prime rate, but no less than 4.0% per annum. SVB's prime rate is currently 4.0% per annum. The Amendment also contains covenants with which the Company must comply, including covenants that pertain to the ratio of certain assets and liabilities of the Company and to the amount of adjusted net losses. The Amendment includes a waiver by SVB of the requirement that the Company comply with the adjusted net loss financial covenant in the Agreement for the fiscal quarter ended September 30, 2008. The foregoing description of the Amendment is qualified in its entirety by reference to the full text of the Amendment, which is filed as Exhibit 10.1 to this Form 8-K, and is incorporated herein by reference. Item 9.01 Financial Statements and Exhibits.
(d) Exhibits The following exhibit is filed with this current report on Form 8-K:

Exhibit No. Description 10.1 Amendment to Amended and Restated Loan and Security Agreement between Silicon Valley Bank and I-Flow Corporation, dated as of December 18, 2008.

---

Table of Contents