Equity Grants
On October 29, 2012, the Compensation Committee of the Board of Directors ("Board") of FEI Company ("Company") approved the grant of restricted stock unit ("RSU") and stock option awards, effective November 1, 2012, from within the Company's 1995 Stock Incentive Plan to the Company's named executive officers in the amounts described in the following table. These awards were a combination of
(i) annual grants of RSUs and stock options made as long-term incentive compensation; and (ii) performance-based RSUs. The performance-based RSUs will vest if the Company achieves certain specified improvements in cash cycle time in 2013 ("Performance Target"). If the Company does not achieve the Performance Target, the performance-based RSUs will be forfeited.

                                Annual Grant Award         Performance Award
                            Number of      Number of           Number of
Named Executive Officer   RSUs Granted1 Options Granted2     RSUs Granted3
Don R. Kania                 23,376          60,776              7,012
Raymond A. Link               7,072          18,396              2,120
Benjamin Loh                  7,336          19,076              2,200
Bradley J. Thies              5,500          14,308              1,648


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2 These options carry a term of seven years and vest in four equal annual installments beginning November 1, 2013.

3 If the Performance Target is achieved, one-third of these RSUs will vest upon the Company's public announcement of its financial results for 2013, one-third will vest on the one-year anniversary of such date and one-third will vest on the two-year anniversary of such date.