Item 1.01 Entry into a Material Definitive Agreement.

On September 18, 2008, Digital Angel Corporation (the "Company") approved amendments to certain options ("Amendments") previously granted to employees of the Company including Joseph Grillo, the Company's Chief Executive Officer and President, and Parke Hess, the Company's Chief Operating Officer. The options granted to Mr. Grillo on January 3, 2008 to purchase 550,000 shares and on January 30, 2008 to purchase 218,965 shares and the option originally granted to Mr. Hess on March 24, 2008 to purchase 300,000 shares originally provided for vesting in five equal annual installments. The Amendments revised the vesting period from five years to three years.

The foregoing description of the Amendments does not purport to be complete and is qualified in its entirety by reference to the complete text of the Form of Amendment to Option Agreement, a copy of which is filed as Exhibit 10.1 to this Current Report on Form 8-K and is incorporated herein by reference.

Item 9.01 Financial Statements and Exhibits.

(d) Exhibits.

10.1 Form of Amendment to the Option Agreement

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