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                                                                    EXHIBIT 10.6

                 EXECUTIVE VARIABLE INCENTIVE COMPENSATION PLAN

1.       PURPOSE OF THE PLAN.

         The purpose of the Executive Variable Incentive Compensation Plan (the
"Plan") is to maximize the efficiency and effectiveness of operations by
providing significant incentive compensation opportunities to key executives.
The Plan is intended to: (l) attract, retain and motivate key executives; (2)
link compensation to performance; (3) shift part of future compensation expense
from fixed to variable; and (4) reinforce the Company's objectives.

         The Plan is designed to provide significant incentive compensation
opportunities and presumes a market competitive base salary program. Incentive
Awards made under the Plan are in addition to Base Salary and Base Salary
adjustments awarded to maintain market competitiveness. The Plan is designed to
reflect, by variable compensation, the degree to which executives, individually
or collectively, contributed to the realization of the significant short term
objectives of Healthcare Realty Trust Incorporated (the "Company").

2.       DEFINITIONS; GENDER AND NUMBER.

         2.1      DEFINITIONS.

         Whenever used herein, the following terms shall have the respective
meanings set forth below:

                  "BASE SALARY" means, with respect to each Participant for a
Plan Year, the base rate of compensation paid to a Participant by the Company
for the Plan Year and excludes all other forms of compensation such as benefits,
pension contributions and other cash payments, but does not exclude employee or
employer contributions which are based upon an employee's deferral of
compensation, such as a non-qualified deferred compensation arrangement or a
cash or deferred arrangement under Section 401(k) of the Internal Revenue Code
of 1986.

                  "BOARD" means the Board of Directors of the Company or the
Executive Committee of the Board of Directors or any other committee thereof as
designated by the Board.

                  "COMPANY" means Healthcare Realty Trust Incorporated.

                  "COMPANY PERFORMANCE INDEX" means the percentage, or portion
thereof, determined by the Compensation Committee to measure the degree of
performance that the Compensation Committee attributes to the Payout Percentage
achieved.

                  "COMPENSATION COMMITTEE" means the Compensation Committee as
designated by the Board, all of the members of which shall be "disinterested
persons" (within the meaning of Rule 16b-3 promulgated by the United States
Securities Exchange Commission ("Rule 16b-3").

                  "FUNDS FROM OPERATIONS (FFO)" means net income (computed in
accordance with generally accepted accounting principles), after determination
of the Incentive Award pursuant to the Plan, excluding gains (or losses) from
debt restructuring and sales of property, plus depreciation and amortization.

EXECUTIVE VARIABLE INCENTIVE COMPENSATION PLAN -- Page 1
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                  "FFO PER SHARE" means FFO for a Plan Year divided by the
weighted average number of shares of common stock of the Company outstanding
during such Plan Year.

                  "INCENTIVE AWARD" is the additional cash compensation,
expressed as a percentage of Base Salary, received by Participants in the Plan
when targeted performance results are attained. A Participant's Incentive Award
shall be calculated as provided in Paragraph 8 of this Plan.

                  "INDIVIDUAL PERFORMANCE INDEX" means, in the case of a
Participant other than the President, the percentage determined by the President
to measure the degree the Participant achieved such Participant's Individual
Performance Objectives for the Plan Year; or in the case of the President, the
percentage determined by the Compensation Committee to measure the degree the
President achieved the President's Individual Performance Objectives for the
Plan Year.

                  "INDIVIDUAL PERFORMANCE OBJECTIVES" means, in the case of
Participants other than the President, the objective goals established by the
President to be achieved by the respective Participant during the course of the
Plan Year; or, in the case of the President, the objective goals established by
the Compensation Committee to be achieved by the President during the course of
the Plan Year.

                  "PARTICIPANT" means an executive of the Company who is
eligible to participate in the Plan and who has been designated a Participant by
the Compensation Committee.

                  "PAYOUT PERCENTAGE" means, for the applicable Plan Year, the
Target Dividend Payment for such Plan Year divided by the FFO per Share for such
Plan Year.

                  "PERFORMANCE PERCENTAGE" means the percentage of each
Participant's portion of the total Incentive Award to be based upon performance
of the Company or of the individual, as applicable.

                  "PLAN" means this Executive Variable Incentive Compensation
Plan.

                  "RESPONSIBILITY FACTOR PERCENTAGE" is the assigned
responsibility factor expressed as a percentage to represent a Participant's
level of responsibility for Company performance.

                  "TARGET DIVIDEND PAYMENT" means the annual targeted dividend
payment determined on a weighted average per share basis of the common stock
outstanding for the applicable Plan Year as determined by the Compensation
Committee upon adoption of the Plan.

                  "YEAR" or "PLAN YEAR" means the Company's fiscal year.

         2.2      GENDER AND NUMBER.

         Except when otherwise indicated by the context, words in the masculine
gender shall include the feminine gender, the singular shall include the plural,
and the plural shall include the singular.

3.       ADMINISTRATION.

         The Plan is administered by the Compensation Committee. The
Compensation Committee has the sole authority to: (1) add Participants, (2)
approve the Performance Percentages for each Participant, (3) approve the
Responsibility Factor Percentage for each Participant, (4) approve the Company
Performance







EXECUTIVE VARIABLE INCENTIVE COMPENSATION PLAN -- Page 2
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Index, (5) approve the Target Dividends and (6) establish any rules or
regulations relating to the Plan and to make any other determinations necessary
to administer the Plan. All modifications or amendments to the Plan shall be
approved by the Compensation Committee. All actions, determinations and
decisions made by the Compensation Committee will be reviewed by the Board and,
upon approval by the Board, will be final, conclusive and binding upon all
parties concerned.

         Any action or recommendation by the Compensation Committee will be
based on a majority of those members verbally expressing their vote at a meeting
of the Compensation Committee, or in writing without a meeting. No Participant
may participate in any way in any decisions affecting his personal Incentive
Award. Individuals serving as Compensation Committee members or Board members
will not be liable in any way to any Participant or his designated beneficiaries
as a result of decisions rendered in the proper administration of this Plan.

4.       PARTICIPATION.

         Employees eligible to participate in this Plan are those executives who
have a major impact on the overall operations of the Company. Upon adoption of
the Plan, the initial Participants shall be designated by action of the
Compensation Committee. The Compensation Committee may add Participants to the
Plan at any time.

         Following adoption of the Plan, the Incentive Award calculation for
Participants who have responsibility changes during the Plan Year or who enter
or exit the Plan shall be modified to adjust for the time spent in each position
of responsibility.

5.       RESPONSIBILITY FACTOR PERCENTAGE.

         Each Participant shall be assigned a Responsibility Factor Percentage
which will be based on the Participant's level of responsibility and potential
impact on corporate profitability. Assignments of Responsibility Factor
Percentages shall be approved by the Compensation Committee. The Responsibility
Factor Percentage for each of the Participants as of the Plan Year of adoption
of this Plan shall be designated by action of the Compensation Committee.

         Additional Participants in the Plan shall be approved by the
Compensation Committee prior to the beginning of the Plan Year during which they
are to become a Participant and will be added to the Plan, together with their
respective Responsibility Factor Percentage and Performance Percentages, by
action of the Compensation Committee.

         Following adoption of the Plan, if a Participant changes positions
during the Plan Year such that the Participant's Responsibility Factor
Percentage changes, the calculation of the Incentive Award shall be prorated to
reflect the time served in each position.

6.       PERFORMANCE PERCENTAGE.

         Each Participant shall be assigned Performance Percentages which shall
determine the portion of his Incentive Award which shall be derived from Company
performance and individual performance. The assignments of the Performance
Percentages to the Participants as of the Plan Year of adoption shall be
designated by action of the Compensation Committee.






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         The Company Performance Index shall be determined by the Compensation
Committee, and shall correspond to a Payout Percentage also determined by the
Compensation Committee.

         The President shall have the responsibility of establishing the
Individual Performance Objectives of individual Participants, other than the
President. The Compensation Committee shall have the responsibility of
establishing the Individual Performance Objectives of the President. All
Individual Performance Objectives will be reviewed for approval by the
Compensation Committee and communicated to the Participants in order to allow
them sufficient time to focus on these objectives. The President shall have the
responsibility of determining the Individual Performance Index for a
Participant, other than the President, for a Plan Year. The Compensation
Committee shall have the responsibility of determining the Individual
Performance Index for the President for a Plan Year.

7.       ADJUSTMENTS.

         In the event that the FFO of the Plan Year in which the Company has
successfully completed an offering of its common stock for cash consideration is
negatively affected, the effect to the FFO shall be considered as a basis for
increasing the Company Performance Index applicable for such Plan Year.

         The Compensation Committee shall have the discretion to increase the
Incentive Awards to Participants with respect to the Plan Year and/or the
succeeding Plan Years in the event that the Company exceeds the maximum amount
as determined by the Compensation Committee or the Company successfully
concludes an extraordinary transaction that, in the opinion of the Compensation
Committee, is of significant value to the Company.

8.       CALCULATION OF INCENTIVE AWARD.

         The Incentive Award for a Participant for a Plan Year shall be (A) the
sum of (i) the Company Performance Index multiplied by the Company portion of
the Participant's Performance Percentage, and (ii) the Individual Performance
Index multiplied by the individual portion of the Participant's Performance
Percentage; multiplied by (B) the product of (i) the Participant's
Responsibility Factor Percentage and (ii) the Participant's Base Salary.

9.       PAYMENT OF INCENTIVE AWARD.

         Incentive Awards shall be payable in cash as soon as practicable after
the end of the Plan Year, following verification of the mathematical accuracy of
the calculation of all Incentive Awards by the Company's external auditor and
approval of the Compensation Committee.

         The Company shall not be liable for payment of interest upon any
Incentive Award.







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10.      TERMINATION OF EMPLOYMENT

         Participants who terminate employment voluntarily or are terminated for
cause in accordance with the terms of their respective employment agreements
shall forfeit their Incentive Awards for the entire Plan Year of termination.
All other Participants who terminate during a Plan Year shall have their
participation in Incentive Awards for the Plan Year of termination determined by
multiplying (i) the amount of Incentive Award such Participant would have
received had such Participant been employed by the Company for the entire Plan
Year, by (ii) a fraction with a numerator equal to the number of days the
Participant was employed during the Plan Year and a denominator of 365.

11.      MISCELLANEOUS PROVISIONS.

         11.1 NO TRANSFERS. No Incentive Awards payable under the Plan shall be
subject in any manner to anticipation, alienation, sale, transfer, assignment,
pledge, encumbrance, or charge, and any such attempted action shall be void and
no such Incentive Award shall be in any manner liable for or subject to debts,
contracts, liabilities, engagements, or torts of any Participants. If any
Participant shall become bankrupt or shall attempt to anticipate, alienate,
sell, transfer, assign, pledge, encumber, or charge any Incentive Award payable
under the Plan, then the Compensation Committee in its discretion may hold or
apply such benefit or any part thereof to or for the benefit of such Participant
or his beneficiary, spouse, children, blood relatives, or other dependents, or
any of them, in such manner and in such proportions as the Compensation
Committee may in its sole discretion consider proper.

         11.2 EMPLOYMENT CONTRACTS. The Plan is not a contract of employment.
Accordingly, neither the establishment of the Plan nor the awarding of any
Incentive Awards under the Plan shall interfere with or limit, in any way, the
rights of a Participant and the Company pursuant to written contracts of
employment or the rights of the Company to terminate any Participant's
employment, nor confer upon any Participant any right to continue in the employ
of the Company, except as set forth in written contracts of employment between
the Company and the Participant.

         11.3 AMENDMENTS. The Compensation Committee may from time to time amend
or modify the Plan, provided that no such action shall adversely affect
Incentive Awards previously established in accordance with the Plan.

         11.4 TAX WITHHOLDING. Payments under the Plan shall be subject to
applicable federal, state, and local tax withholding requirements.

         11.5 FUNDING. The Plan shall be unfunded. The Company shall not be
required to segregate any assets to pay Incentive Awards. The liability of the
Company to pay any Participant with respect to Incentive Awards shall be based
solely upon the written provisions of the Plan; no such obligation shall be
deemed to be secured by any pledge or encumbrance on any property of the
Company.






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         IN WITNESS WHEREOF, the Company has caused the Plan to be executed in
its name and behalf on this 1st day of November, 1999 by its officers thereunto
duly authorized.

                                        HEALTHCARE REALTY TRUST
                                        INCORPORATED

                                        By: _______/S/_________________________
                                        Name: David R. Emery
                                        Title:  President and Chairman










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                                   EXHIBIT "A"

                       ANNUAL INCENTIVE AWARD CALCULATION

         The Incentive Award for a Participant for a Plan Year shall be (A) the
sum of (i) the Company Performance Index multiplied by the Company portion of
the Participant's Performance Percentage, and (ii) the Individual Performance
Index multiplied by the individual portion of the Participant's Performance
Percentage; multiplied by (B) the product of (i) the Participant's
Responsibility Factor Percentage and (ii) the Participant's Base Salary.

STEP 1            PERFORMANCE %
------            -------------

Add the award percentages determined by evaluating Company and Individual
Performance

(Company Performance Index X Company portion of the Participant's Performance %)
+ (Individual Performance Index X individual portion of the Participant's
Performance %) = Award % (expressed as a decimal fraction)

STEP 2            RESPONSIBILITY FACTOR
------            ---------------------
Multiply the Award % (expressed as a decimal fraction) times the Participant's
Responsibility Factor Percentage (expressed as a decimal fraction) times the
Participant's Base Salary to calculate the Participant's Incentive Award.

       Award % X Responsibility Factor % X Base Salary = Incentive Award


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                                   EXHIBIT "B"

           PAYOUT PERCENTAGE
           REQUIRED TO PAY                             COMPANY PERFORMANCE INDEX
           TARGET DIVIDEND

--------------------------------------------------------------------------------

                  95%                                              10%
                  94%                                              20%
                  93%                                              30%
                  92%                                              40%
                  91%                                              50%
                  90%                                              60%
                  89%                                              70%
                  88%                                              80%
                  87%                                              90%
                  86%                                              100%
                  85%                                              110%
                  84%                                              120%
                  83%                                              130%
                  82%                                              140%
                  81%                                              150%
                  80%                                              160%
                  <80%                                             170%

Payout Percentages for other than whole integers shall be prorated with the
corresponding Company Performance Index. For Example, a Payout Percentage of
94.5% shall equate to a Company Performance Index of 15%.


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                                TARGET DIVIDENDS
                                ----------------

PLAN YEAR                                   TARGET DIVIDEND
---------                                   ---------------
1994                                        1.7700
1995                                        1.8525
1996                                        1.9400
1997                                        2.0275
1998                                        2.1275
1999                                        2.2275
2000                                        2.3350
2001                                        2.4445
2002                                        2.5650
2003                                        2.6850


                       PARTICIPANT PERFORMANCE PERCENTAGES
                       -----------------------------------
<TABLE>
<CAPTION>
PARTICIPANTS              COMPANY          INDIVIDUAL        RESPONSIBILITY FACTOR
------------              -------          ----------        ---------------------
<S>                       <C>              <C>               <C>
David R. Emery            80%              20%               100%

Roger O. West             80%              20%               100%

Timothy G. Wallace        80%              20%               100%
</TABLE>