Item 1.01 Entry into a Material Definitive Agreement.

On June 1, 2008, Artificial Life, Inc. (the "Company") amended Eberhard Schoneburg's employment contract ("Amendment"). The Amendment becomes effective on June 1, 2008 and will extend the current employment agreement through December 31, 2011. In accordance with the terms of the Amendment, Mr. Schoneburg will continue to serve as the current and acting Chairman, CEO, President and Principle Financial Officer of the Company. In addition, Mr. Schoneburg will continue to receive the benefits under the current employment agreement and receive a base salary of US$30,000 per month.