Exhibit
    10.16
  INCUBATOR-CONTRACT NO.: BMA-B2/A  INC. 1 &
    6-05.001.
  THIS LEASE AGREEMENT (THE LEASE) IS ENTERED INTO
    BY AND BETWEEN VESTA BAJA CALIFORNIA S. DER.L. DE C.V.
    (VESTA) REPRESENTED BY ALEJANDRO ITUARTE EGEA, IN
    HIS CAPACITY AS LEGAL REPRESENTATIVE HEREINAFTER REFERRED TO AS
    THE LANDLORD, AND ON THE OTHER HAND BLOCK MEDICAL DE
    MEXICO S.A. DE C.V. REPRESENTED BY MR. PABLO QUINTANA, IN HIS
    CAPACITY AS LEGAL REPRESENTATIVE HEREINAFTER REFERRED TO AS THE
    TENANT; AND I-FLOW CORPORATION., AS GUARANTOR,
    REPRESENTED BY MR. JAMES DAL PORTO, VICE-PRESIDENT, IN
    ACCORDANCE WITH THE FOLLOWING STATEMENTS AND CLAUSES:
  STATEMENTS:
  I.
    LANDLORD
    REPRESENTATIVE STATES      
    Electrical capacity of 300 AMP/220V, 3 phased 4H, with
    possibility to grow.
    General lighting.
    No charge for non productive water consumption.
    Shared restrooms.
    2 dock doors, truck high loading.          II.
    TENANTS
    REPRESENTATIVE STATES:   1




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CLAUSES
  FIRST.
    LEASE
    OBJECTIVE      SECOND.
    TERM  th th
      THIRD.
    LEASE
    RATE  th
    5%
  th
  FOURTH.
    SECURITY
    DEPOSIT.     2




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FIFTH.
    USE OF
    THE LEASED PREMISES      SIXTH.
    RENT
    ABATEMENT        SEVENTH.
    GUARANTOR      EIGHTH.  ALTERATIONS BY TENANT
    NINTH.
    UTILITIES
    OF THE LEASED PREMISES    
    Electricity:  TENANT shall pay to
    LANDLORD the cost of electricity on a monthly basis, in
    accordance to the consumption on their power meter at the same
    rate charged by the electric company. 3




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
    Water:  LANDLORD provides water for
    restrooms. Any other water consumption, LANDLORD will charge to
    TENANT.
    Telephone:  TENANT shall deal directly
    with contract the telephone service and agrees to pay the
    periodic cost of this utility.  TENTH.
    MAINTENANCE
    OF THE LEASED PREMISES BY LANDLORD    ELEVENTH.
    MAINTENANCE
    OF THE LEASED PREMISES BY TENANT      TWELFTH.
    RIGHT TO
    SUBLETTING    THIRTEENTH.
    TERMINATION
    OF THE LEASE BY TENANT    FOURTEENTH.
    INSURANCE    FIFTEENTH.
    PAYMENT
    OF VALUE ADDED TAX    SIXTEENTH.
    PARK
    ASSOCIATION FEES.   4




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SEVENTEENTH.
    DOMICILE
    THE LANDLORD
  THE GUARANTOR
  THE TENANT
    EIGHTEENTH.
    ASSIGNMENT
    BY LANDLORD; SUBORDINATION        NINETEENTH.
    GOOD
    FAITH, AUTHORITY AND INTENTIONS    TWENTIETH.
    NON-COMPLIANCE   5




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TWENTIFIRST.
    GOVERNING
    LAW        LANDLORDVESTA BAJA CALIFORNIA,
    S. DE R.L. DE C.V.

TENANTBLOCK MEDICAL DE MEXICO S.A. DE C.V./s/  Lic.
    Alejandro Ituarte Egea

/s/  Mr.
    Pablo QuintanaLic. Alejandro Ituarte Egea
    Legal Representative

By: Mr. Pablo Quintana
Legal
    Representative   GUARANTOR l-FLOW
    CORPORATION./s/  Mr. James
    Dal
    Porto
     WITNESS

WITNESSIng. Elias Laniado Laborín

Mr. Héctor Alonso Barajas Nava  6




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EXHIBIT
    C
  LA MESA
    INDUSTRIAL PARK
  RULES AND
    REGULATIONS
  REGULATIONS,
    USE AND PROTECTION RULES
    ARTICLE I.  TERMS
    AND DEFINITIONS
  Agreement No. BMA-B2/A-INC.1&6-050991 th
  A.
    Leased
    premises    B.
    La Mesa
    Industrial Park    C.
    Tenant    D.
    Tenant
    improvements:      E.
    Landlord.    F.
    Access
    routes:    ARTICLE II.  INDUSTRIAL
    OR COMMERCIAL ACTIVITY PERMITTED.
       1




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ARTICLE III.  EXTERIOR
    PARKING PLACES AND UNLOADING ZONES
        ARTICLE IV.  GREEN
    AREAS, MAINTENANCE STORAGE AND SECURITY.
          ARTICLE V.  ADVERTISING
    AND PUBLICITY SPACES.
            ARTICLE VI.  IMPROVEMENTS
        ARTICLE VII.  REINFORCEMENT.
   2




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No. 10611-1201
      and/or
 3