Compensation expense for the restricted stock which is not contingent upon NNN’s performance goals is determined based  upon the fair value at the date of grant and is recognized as the greater of the amount amortized over a straight lined basis or the  amount vested over the vesting periods. Vesting periods for officers and key associates of NNN range from three to five years  and generally vest yearly. NNN recognizes compensation expense on a straight-line basis for awards with only service  conditions. During the years ended December 31, 2013 and 2012, NNN granted 152,901 and 185,915, respectively, performance based  shares subject to its total shareholder return growth after a three years period relative to its peers. The shares were granted to  certain executive officers and had weighted average grant price of $33.73 and $26.85, respectively, per share. Once the  performance criteria are met and the actual number of shares earned is determined, the shares vest immediately. For the 2013  and 2012 grants, the conditions are based on market conditions, and the fair value was determined at the grant date (for a fair  value share price of $21.54 and $15.71, respectively). Compensation expense is recognized over the requisite service period for  both grants. The following summarizes other grants made during the year ended December 31, 2013, pursuant to the 2007 Plan. The total compensation cost for share-based payments for the years ended December 31, 2013, 2012 and 2011, totaled  $7,459,000, $8,131,000 and $6,390,000, respectively, of such compensation expense. At December 31, 2013, NNN had  $10,929,000 of unrecognized compensation cost related to non-vested share-based compensation arrangements under the 2007  Plan. This cost is expected to be recognized over a weighted average period of 2.5 years. In addition, NNN recognized  performance based long term incentive cash compensation of $729,000, $1,684,000 and $1,702,000 for the years ended  December 31, 2013, 2012 and 2011 respectively. NNN believes the carrying value of its Credit Facility approximates fair value based upon its nature, terms and variable interest  rate. NNN believes that the carrying value of its cash and cash equivalents, mortgages, notes and other receivables, mortgages  payable and other liabilities at December 31, 2013 and 2012, approximate fair value based upon current market prices of  similar issues. At December 31, 2013 and 2012, the carrying value and fair value of NNN’s notes payable and convertible notes  payable, collectively, was $1,555,672,000 and $1,585,756,000, respectively, based upon quoted market prices, which are a level  1 input. Note 18 – Fair Value of Financial Instruments: Shares Weighted Average Share Price Other share grants under the 2007 Plan: Directors’ fees 16,605 $ 35.08 Deferred directors’ fees 12,308 35.09 28,913 $ 35.08 Shares available under the 2007 Plan for grant, end of period 3,958,300  72