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<P align="center" style="font-size: 14pt"><B>UNITED STATES<BR>
SECURITIES AND EXCHANGE COMMISSION<BR>
<FONT style="font-size: 12pt">Washington, D.C. 20549
</FONT></B>

<P align="center" style="font-size: 18pt"><B>FORM 8-K</B>

<P align="center" style="font-size: 12pt"><B>CURRENT REPORT<BR>
Pursuant to Section 13 OR 15(d) of The Securities Exchange Act of 1934</B>

<P align="center" style="font-size: 10pt"><B>Date of Report (Date of earliest event reported): September 18, 2008</B>

<P align="center">

<P align="center" style="font-size: 24pt"><B>DIGITAL ANGEL CORPORATION<BR></B>
<FONT style="font-size: 10pt">(Exact name of registrant as specified in its charter)
</FONT>

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    <TD style="border-bottom: 1px solid #000000"><B>DELAWARE</B></TD>
    <TD>&nbsp;</TD>
    <TD style="border-bottom: 1px solid #000000"><B>0-26020</B></TD>
    <TD>&nbsp;</TD>
    <TD style="border-bottom: 1px solid #000000"><B>43-1641533</B></TD>
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<TR valign="top">
    <TD>(State or other Jurisdiction of Incorporation)</TD>
    <TD>&nbsp;</TD>
    <TD>(Commission File Number)</TD>
    <TD>&nbsp;</TD>
    <TD>(IRS Employer Identification No.)</TD>
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    <TD style="border-bottom: 1px solid #000000"><B>490 VILLAUME AVENUE<BR>SOUTH ST. PAUL, MINNESOTA<BR></B></TD>
    <TD>&nbsp;</TD>
    <TD style="border-bottom: 1px solid #000000"><B>55075</B></TD>
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<TR valign="top">
    <TD>(Address of Principal Executive Offices)</TD>
    <TD>&nbsp;</TD>
    <TD>(Zip Code)</TD>
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<P align="center" style="font-size: 10pt">Registrant&#146;s telephone number, including area code: <B>651-455-1621</B>


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    <TD nowrap>(Former name or former address if changed since last report.)</TD>
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<P align="left" style="font-size: 10pt">Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant
under any of the following provisions:

<P align="left" style="font-size: 10pt">
<FONT face="Wingdings">&#111;</FONT> Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)<BR><BR>
<FONT face="Wingdings">&#111;</FONT> Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)<BR><BR>
<FONT face="Wingdings">&#111;</FONT> Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))<BR><BR>
<FONT face="Wingdings">&#111;</FONT> Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))<BR>


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<P align="justify" style="font-size: 10pt"><B>Section&nbsp;1 &#150; Registrant&#146;s Business and Operations</B>


<P align="justify" style="font-size: 10pt"><B>Item&nbsp;1.01 Entry into a Material Definitive Agreement.</B>


<P align="justify" style="font-size: 10pt; text-indent: 2%">On September&nbsp;18, 2008, Digital Angel Corporation (the &#147;Company&#148;) approved amendments to certain options
(&#147;Amendments&#148;) previously granted to employees of the Company including Joseph Grillo, the Company&#146;s Chief Executive
Officer and President, and Parke Hess, the Company&#146;s Chief Operating Officer. The options granted to Mr.&nbsp;Grillo on
January&nbsp;3, 2008 to purchase 550,000 shares and on January&nbsp;30, 2008 to purchase 218,965 shares and the option originally
granted to Mr.&nbsp;Hess on March&nbsp;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.


<P align="justify" style="font-size: 10pt; text-indent: 2%">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&nbsp;10.1
to this Current Report on Form 8-K and is incorporated herein by reference.


<P align="justify" style="font-size: 10pt"><B>Section&nbsp;9 &#151; Financial Statements and Exhibits</B>


<P align="justify" style="font-size: 10pt"><B>Item&nbsp;9.01 Financial Statements and Exhibits.</B>
<BR>
&nbsp;


<P align="justify" style="font-size: 10pt; text-indent: 4%">(d)&nbsp;Exhibits.

&nbsp;
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    <TD align ="right" valign="top"><DIV style="margin-left:0px; text-indent:-0px">10.1
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    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Form of Amendment to the Option Agreement</TD>
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<P align="center" style="font-size: 10pt"><B>SIGNATURES</B>



<P align="justify" style="font-size: 10pt; text-indent: 2%">Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to
be signed on its behalf by the undersigned hereunto duly authorized.

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    <TD nowrap align="left" colspan="3"><B>DIGITAL ANGEL CORPORATION</B></TD>
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    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Date: September&nbsp;23, 2008
</DIV></TD>
    <TD>&nbsp;</TD>
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    <TD align="left" valign="top"></TD>
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&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">By:
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><B>/</B>s/ Lorraine M. Breece&nbsp;&nbsp;&nbsp;</TD>
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&nbsp;</DIV></TD>
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    <TD nowrap align="left" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
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&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Name: Lorraine M. Breece</TD>
</TR>
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    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">
&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Title: Senior Vice President and
&nbsp;Chief Financial Officer</TD>
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<P align="center" style="font-size: 10pt"><B>Exhibit&nbsp;Index</B><BR>
&nbsp;


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    <TD nowrap align="left" style="border-bottom: 1px solid #000000"><B>Exhibit&nbsp;No.</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>Description&nbsp;of&nbsp;Exhibit</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>Page</B></TD>
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    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">10.1
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Form of Amendment to the Option Agreement
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"></TD>
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Filed by Bowne Pure Compliance
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 OR 15(d) of The Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): September 18, 2008
DIGITAL ANGEL CORPORATION
(Exact name of registrant as specified in its charter)
DELAWARE
0-26020
43-1641533
(State or other Jurisdiction of Incorporation)
(Commission File Number)
(IRS Employer Identification No.)
490 VILLAUME AVENUE
SOUTH ST. PAUL, MINNESOTA
55075
(Address of Principal Executive Offices)
(Zip Code)
Registrant's telephone number, including area code:
651-455-1621
(Former name or former address if changed since last report.)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant
under any of the following provisions:
o
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
o
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
o
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
o
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Section 1 – Registrant's Business and Operations
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.
Section 9 — Financial Statements and Exhibits
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits.
10.1
Form of Amendment to the Option Agreement
2
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to
be signed on its behalf by the undersigned hereunto duly authorized.
DIGITAL ANGEL CORPORATION
Date: September 23, 2008
By:
/
s/ Lorraine M. Breece
Name: Lorraine M. Breece
Title: Senior Vice President and
 Chief Financial Officer
3
Exhibit Index
Exhibit No.
Description of Exhibit
Page
10.1
Form of Amendment to the Option Agreement
4