What is the main purpose of this 8-K filing?

The main purpose of this 8-K filing is to inform investors about a change in how KLA Corporation grants stock options to its outside directors under the 1998 Outside Director Option Plan. The grants will now be issued quarterly instead of annually.

Will the total number of options granted to outside directors change?

No, the total number of shares granted annually to outside directors as options will remain the same at an aggregate of 10,000 shares. The change is solely in the frequency of distribution.

How does this change affect investors?

For investors, this change primarily affects the timing of equity dilution related to director compensation. Instead of a single annual grant, the potential dilution will be spread more evenly throughout the year, quarter by quarter. It indicates a shift in the company's compensation structure for its board members.

What is Exhibit 10.1?

Exhibit 10.1 is the Form of Option Agreement that KLA Corporation uses when granting options to its outside directors under the 1998 Outside Director Option Plan. This document outlines the terms and conditions of these specific option grants.

KLAC 8-K SEC Disclosure

Summary

KLA Corporation (KLAC) filed an 8-K on October 18, 2004, to disclose an update regarding its 1998 Outside Director Option Plan. The company's Board of Directors has decided to change the structure of option grants to outside directors. Previously granted annually, these options will now be distributed quarterly. Specifically, outside directors will continue to receive an aggregate of 10,000 shares per year in option grants. However, these grants will be divided into four equal installments, awarded each quarter. This change affects the timing and frequency of equity compensation for non-employee directors, providing a more consistent distribution of potential equity value over the year.

Key Highlights

1KLA Corp (KLAC) filed an 8-K on October 18, 2004.
2The filing relates to changes in the 1998 Outside Director Option Plan.
3Outside directors will continue to receive an aggregate of 10,000 shares per year in option grants.
4Option grants will now be made quarterly in four equal installments, instead of a single annual grant.
5This change impacts the timing of equity compensation for KLA's outside directors.
6The form of the option agreement used for these grants is attached as Exhibit 10.1.

KLA CORP 8-K Report, Corporate Update (Oct 18, 2004)

Summary

Key Highlights

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