Document:

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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.

EXECUTIVE VARIABLE INCENTIVE COMPENSATION PLAN -- Page 3
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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.

EXECUTIVE VARIABLE INCENTIVE COMPENSATION PLAN -- Page 4
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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.

EXECUTIVE VARIABLE INCENTIVE COMPENSATION PLAN -- Page 5
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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

EXECUTIVE VARIABLE INCENTIVE COMPENSATION PLAN -- Page 6
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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><PAGE>   1
                                                                    EXHIBIT 10.7

                      HEALTHCARE REALTY TRUST INCORPORATED

                        2000 EMPLOYEE STOCK PURCHASE PLAN

                           EFFECTIVE JANUARY 25, 2000

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                      HEALTHCARE REALTY TRUST INCORPORATED
                        2000 EMPLOYEE STOCK PURCHASE PLAN

                                    PREAMBLE

         WHEREAS, Healthcare Realty Trust Incorporated (the "Company")
established the Healthcare Realty Trust Incorporated 1995 Employee Stock
Purchase Plan through which employees of the Company and its affiliates could
purchase from the Company shares of its common stock;

         WHEREAS, the Company wishes to continue to provide a plan through which
employees of the Company and its affiliates may purchase Company common stock;
and

         WHEREAS, the Company intends that the new plan be an "employee stock
purchase plan" within the meaning of section 423 of the Internal Revenue Code of
1986, and has designed the plan to conform to the provisions of Rule 16b-3 of
the Exchange Act;

         NOW, THEREFORE, the Company hereby establishes the Healthcare Realty
Trust Incorporated 2000 Employee Stock Purchase Plan (the "Plan"):

                                   ARTICLE I.
                                 PURPOSE OF PLAN

         The purpose of the Plan is to secure for the Company and its
shareholders the benefits of the incentive inherent in the ownership of the
Company's common stock by present and future employees of the Company and its
Affiliates.

                                   ARTICLE II.
                                   DEFINITIONS

         2.1 Affiliate. Each corporation that is designated as an Affiliate by
the Company pursuant to Section 5.3.

         2.2 Agreement. An agreement between a Participant and the Company or an
Affiliate through which the Participant elects to exercise the Options granted
to him hereunder and authorizes payment of the Option exercise price.

         2.3 Board. The board of directors of the Company.

         2.4 Code. The Internal Revenue Code of 1986, as amended.

         2.5 Committee. The committee designated by the Board as the
"compensation committee" or is otherwise designated by the Board to administer
the Plan.

         2.6 Company. Healthcare Realty Trust Incorporated and its successors
and assigns.

                                            HEALTHCARE REALTY TRUST INCORPORATED
                                               2000 EMPLOYEE STOCK PURCHASE PLAN

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         2.7 Eligible Employee. An employee of the Company or an Affiliate,
except for the following:

             (a) An employee who has been employed by the Company or an
                 Affiliate for less than 90 days.

             (b) An employee whose customary employment is less than 20 hours
                 per week.

             (c) An employee whose customary employment is for five months or
                 less in a calendar year.

             (d) An employee who would own more than 5% of the total combined
                 voting power of all classes of stock of the Company or an
                 Affiliate at the time such employee would be granted an
                 Option. For the purpose of determining if an employee owns
                 more than 5% of such stock, he shall be deemed to own (i) any
                 stock owned (directly or indirectly) by or for his brothers
                 and sisters (whether by whole or half blood), spouse,
                 ancestors or lineal descendants, (ii) any stock owned
                 (directly or indirectly) by or for a corporation, partnership,
                 estate or trust of which such individual is a shareholder,
                 partner or beneficiary in proportion to his interest in such
                 corporation, partnership, estate or trust, and (iii) any stock
                 the individual may purchase under an outstanding stock option.

         2.8 Exchange Act. The Securities Exchange Act of 1934, as amended.

         2.9 Exercise Date. The last day of each calendar quarter, which shall
be March 31st, June 30th, September 30th and December 31st of each year.

         2.10 Fair Market Value. On any given date, Fair Market Value shall be
the applicable description below (unless, where appropriate, the Committee
determines in good faith the fair market value of the Stock to be otherwise):

              (a) If the Stock is traded on the New York Stock Exchange, Fair
                  Market Value shall be the closing price of the Stock on such
                  exchange on the trading day on which Fair Market Value is
                  being determined, or on the next preceding day on which such
                  Stock is traded if no Stock was traded on such trading day.

              (b) If the Stock is not traded on the New York Stock Exchange, but
                  is reported on the Nasdaq National Market System or another
                  Nasdaq automated quotation system, and market information is
                  published on a regular basis, then Fair Market Value shall be
                  the closing price of the Stock, as so published, on the
                  trading day on which Fair Market Value is being determined, or
                  the closing price on the next preceding trading day on

                                            HEALTHCARE REALTY TRUST INCORPORATED
                                               2000 EMPLOYEE STOCK PURCHASE PLAN

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                  which such prices were published if no Stock was traded on
                  such trading day.

              (c) If market information is not so published on a regular basis,
                  then Fair Market Value shall be the average of the high bid
                  and low asked prices of the Stock in the over-the-counter
                  market during the trading period during which Fair Market
                  Value is being determined or during the next preceding trading
                  period in which such high bid and low asked prices were
                  recorded, as reported by a generally accepted reporting
                  service.

              (d) If the Stock is not publicly traded, Fair Market Value shall
                  be the value determined in good faith by the Committee or the
                  Board, determined without regard to any restriction on the
                  Stock, other than a restriction which by its terms will never
                  lapse.

         2.11 Grant Date. The first Grant Date shall be the date determined by
the board of directors of the Company at the time the Plan is adopted.
Thereafter, the Grant Date shall be the first day of each calendar year.

         2.12 Option. The right that is granted hereunder to a Participant to
purchase from the Company a stated number of shares of Stock at a stated
exercise price.

         2.13 Participant. An Eligible Employee who has elected to exercise an
Option and participate in the Plan in accordance with Article 3.

         2.14 Payroll Account. A bookkeeping account to which are added the
amounts withheld on behalf of each Participant under regular payroll deductions
authorized by Participants hereunder, and which is reduced by amounts due to the
Company to pay the exercise price of Options exercised hereunder.

         2.15 Plan. The Healthcare Realty Trust Incorporated 2000 Employee
Stock Purchase Plan.

         2.16 Stock. The common stock of the Company, $0.01 par value.

                                  ARTICLE III.
                          GRANT AND EXERCISE OF OPTIONS

         3.1 General Conditions. On each Grant Date, each employee who is an
Eligible Employee on such date shall, without further action of the Committee,
be granted an Option to purchase whole shares of Stock, provided that no
Eligible Employee may be granted an Option which permits his rights to purchase
Stock under the Plan and all other employee stock purchase plans (described in
section 423(b) of the Code) of the Company and its Affiliates to accrue at a
rate that exceeds $25,000 of Fair Market Value of such Stock (determined on the
date that the Option is granted) for each calendar year in which such Option is
outstanding at any time. Each Option grant is subject to the following terms and
conditions:

                                            HEALTHCARE REALTY TRUST INCORPORATED
                                               2000 EMPLOYEE STOCK PURCHASE PLAN

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             (a)  The exercise price of each Option shall be 85% of Fair Market
                  Value of each share of Stock that is subject to the Option,
                  based on the Stock's Fair Market Value that is determined on
                  the Grant Date or, if less, on the date the Option is
                  exercised.

             (b)  Each Option, or portion thereof, that has not been exercised
                  shall expire 27 months after the Grant Date on which the
                  Option was granted, unless it expires sooner pursuant to
                  Section 3.1(c).

             (c)  Each Option that has not yet expired pursuant to Section
                  3.1(b) shall expire on the date that the Eligible Employee
                  terminates employment with the Company and all of its
                  Affiliates or revokes his election pursuant to Section 3.4;
                  provided, however, if termination is due to the death or
                  disability (as determined in the discretion of the Committee
                  by reference to any disability benefit plan of the Company) of
                  the Eligible Employee, the Participant (or his personal
                  representative) may elect to revoke his election pursuant to
                  Section 3.4.

             (d)  A right to purchase Stock which has accrued under one Option
                  granted hereunder may not be carried over to any other Option.

         3.2 Right to Exercise. An Option shall be exercisable at any time prior
to its expiration in a manner described in Section 3.3. An Eligible Employee
must exercise an Option while he is an employee of the Company or an Affiliate
or within the periods that are specified herein after termination of employment.

         3.3 Method of Exercise. An Eligible Employee may exercise an Option
only on an Exercise Date by providing written notice of intent to exercise prior
to or coincident with the applicable Exercise Date and by payment of the
exercise price in cash or such other form that is acceptable to the Committee.
An Eligible Employee may also elect to exercise an Option through a Payroll
Account election described in Section 3.4.

         3.4 Payment of Exercise Price from Payroll Account. An Eligible
Employee who desires to pay the exercise price of an Option from his Payroll
Account as described in Section 3.3 must timely execute an Agreement in the form
and manner prescribed by the Committee prior to the applicable Exercise Date.
The Agreement shall provide for authorization of deductions from the Eligible
Employee's regular payroll that is credited to a Payroll Account. Amounts
credited to a Participant's Payroll Account shall be accumulated and reserved
for payment of the exercise price of Options granted hereunder.

             (a)  The funds held in the Payroll Account shall first be applied
                  to exercise options with the lowest exercise price. In the
                  event that all Options have the same exercise price on an
                  Exercise Date, the funds held in the Payroll Account shall be
                  first applied to exercise Options in the order they were
                  granted

                                            HEALTHCARE REALTY TRUST INCORPORATED
                                               2000 EMPLOYEE STOCK PURCHASE PLAN

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             (b)  A Participant may initiate, modify or revoke his election to
                  contribute to his Payroll Account at any time by timely
                  providing the Committee written notice in the form prescribed
                  by the Committee. An election to begin or modify contributions
                  shall be effective on the February 8th or August 8th that
                  coincides with or next follows such written notice with the
                  exception of a Participant's initial election in the year the
                  Plan is adopted, which may be submitted and effective as late
                  as March 8, 2000. An election to revoke contributions shall be
                  effective on the first payroll date following written notice
                  thereof.

             (c)  Each Participant's election specified under an Agreement shall
                  remain in effect until modified or revoked by the Participant
                  in accordance with Section 3.4(b).

             (d)  The Options granted hereunder for the calendar years 2000 and
                  2001 are conditioned on the Eligible Employee revoking the
                  Option granted to him on January 1, 2000, under the Healthcare
                  Realty Trust Incorporated 1995 Employee Stock Purchase Plan.
                  Such revocation may be evidenced by written notice to the
                  Company or by the exercise of an Option hereunder in a manner
                  specified in Section 3.3

         3.5 Issuance of Stock. The Company shall issue whole shares of Stock to
a Participant after each Exercise Date. For Options that are not exercised
through a Payroll Account election, the number of shares to be issued shall be
determined by the instructions contained in the written notice of exercise
described in Section 3.2. For shares acquired through a Payroll Account
election, shares shall be issued as follows:

             (a)  The Company shall determine the number of whole shares of
                  Stock to be issued to each Participant with respect to an
                  Exercise Date by dividing the balance of such Participant's
                  Payroll Account by the applicable exercise price of the
                  Option.

             (b)  The Company shall deduct from a Participant's Payroll Account
                  the amount necessary to purchase the greatest number of whole
                  shares of Stock that can be acquired under the applicable
                  Option.

             (c)  Any amounts remaining in the Payroll Account after deducting
                  the exercise price for whole shares of Stock shall generally
                  be held for use on a subsequent Exercise Date. However, a
                  Participant who has made contributions to a Payroll Account
                  and has revoked his election to exercise an Option under the
                  terms of Section 3.3 may obtain payment of the amounts held in
                  his Payroll Account from the Company by requesting such
                  payment in writing to the Committee in the time and manner
                  specified by the Committee. A Participant who has terminated

                                            HEALTHCARE REALTY TRUST INCORPORATED
                                               2000 EMPLOYEE STOCK PURCHASE PLAN

                                       5

<PAGE>   7

                  employment shall be paid any amounts remaining in his Payroll
                  Account after the expiration of all Options hereunder.

         3.6 Nontransferability. Any Option granted under this Plan shall not be
transferable except by will or by the laws of descent and distribution. Only the
Participant to whom an Option is granted may exercise such Option, unless he is
deceased. No right or interest of a Participant in any Option shall be liable
for, or subject to, any lien, obligation or liability of such Participant.

         3.7 Shareholder Rights. No Participant shall have any rights as a
shareholder with respect to shares subject to his Option prior to the time that
such Option is exercised.

         3.8 Issuance and Delivery of Shares. Shares of Stock issued pursuant to
the exercise of Options hereunder shall be delivered to Participants by the
Company (or its transfer agent) as soon as administratively feasible after a
Participant exercises an Option hereunder, executes any applicable shareholder
agreement that the Company requires at the time of exercise and requests
delivery of the shares.

                                   ARTICLE IV.
                              STOCK SUBJECT TO PLAN

         4.1 Source of Shares. Upon the exercise of an Option, the Company may
deliver to the Participant authorized but unissued shares of Stock.

         4.2 Maximum Number of Shares. The maximum aggregate number of shares of
Stock that may be issued pursuant to the exercise of Options is 1,000,000
subject to increases and adjustments as provided in Article 6.

         4.3 Forfeitures. If an Option is terminated, in whole or in part, the
number of shares of Stock allocated to such Option or portion thereof may be
reallocated to other Options to be granted under this Plan.

                                   ARTICLE V.
                           ADMINISTRATION OF THE PLAN

         5.1 General Authority. The Plan shall be administered by the Committee.
The express grant in the Plan of any specific power to the Committee shall not
be construed as limiting any power or authority of the Committee. No member of
the Committee shall be liable for any act done in good faith with respect to
this Plan or any Agreement or Option. The Company shall bear all expenses of
Plan administration. The interpretation and construction by the Committee of any
terms or provisions of this Plan or of any rule or regulation promulgated in
connection herewith, shall be conclusive and binding on all persons. In addition
to all other authority vested with the Committee under the Plan, the Committee
shall have complete authority to:

             (a)  Interpret all provisions of this Plan;

                                            HEALTHCARE REALTY TRUST INCORPORATED
                                               2000 EMPLOYEE STOCK PURCHASE PLAN

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<PAGE>   8

             (b)  Prescribe the form of any Agreement and notice and manner for
                  executing or giving the same;

             (c)  Adopt, amend, and rescind rules for Plan administration; and

             (d)  Make all determinations it deems advisable for the
                  administration of this Plan.

         5.2 Persons Subject to Section 16(b). Notwithstanding anything in the
Plan to the contrary, the Board, in its absolute discretion, may bifurcate the
Plan so as to restrict, limit or condition the use of any provision of the Plan
to Participants who are members of the Committee subject to Section 16(b) of the
Exchange Act without so restricting, limiting or conditioning the Plan with
respect to other Participants.

         5.3 Designation of Affiliates. The Company may from time to time
designate a "parent corporation," as defined in section 424(e) of the Code, or
"subsidiary corporation," as defined in section 424(f) of the Code, to be a
participating corporation in a manner that is consistent with Treasury
Regulation ss. 1.423-2(c)(4). Corporations that are so designated shall be
Affiliates for purposes of this Plan. Such designation shall be evidenced by the
express inclusion of the corporation as an Affiliate within Section 2.1, the
intentional act of the Company or the Committee to communicate in writing the
grant of Options hereunder to employees of a corporation, or such other written
document that is intended to evidence such designation. The Company or Committee
may rescind the designation of a corporation as an Affiliate by adopting a
writing that is intended to evidence such rescission.

                                   ARTICLE VI.
                        ADJUSTMENT UPON CORPORATE CHANGES

         6.1 Adjustments to Shares. The maximum number and kind of shares of
stock with respect to which Options hereunder may be granted and which are the
subject of outstanding Options shall be adjusted by way of increase or decrease
as the Committee determines (in its sole discretion) to be appropriate, in the
event that:

             (a) the Company or an Affiliate effects one or more stock
                 dividends, stock splits, reverse stock splits, subdivisions,
                 consolidations or other similar events;

             (b) the Company or an Affiliate engages in a transaction to which
                 section 424 of the Code applies; or

             (c) there occurs any other event which in the judgment of the
                 Committee necessitates such action.

Provided, however, that if an event described in paragraph (a) or (b) occurs,
the Committee shall make adjustments to the limits on Options and on the award
of Options specified hereunder that are proportionate to the modifications of
the Stock that are on account of such corporate changes.

                                            HEALTHCARE REALTY TRUST INCORPORATED
                                               2000 EMPLOYEE STOCK PURCHASE PLAN

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<PAGE>   9

         6.2 Substitution of Options on Merger or Acquisition. The Committee may
grant Options in substitution for stock awards, stock options, stock
appreciation rights or similar awards held by an individual who becomes an
employee of the Company or an Affiliate in connection with a transaction to
which section 424(a) of the Code applies. The terms of such substituted Options
shall be determined by the Committee in its sole discretion, subject only to the
limitations of Article 4.

         6.3 No Preemptive Rights. The issuance by the Company of shares of
stock of any class, or securities convertible into shares of stock of any class,
for cash or property, or for labor or services rendered, either upon direct sale
or upon the exercise of rights or warrants to subscribe therefor, or upon
conversion of shares or obligations of the Company convertible into such shares
or other securities, shall not affect, and no adjustment by reason thereof shall
be made with respect to, outstanding Options.

         6.4 Fractional Shares. Only whole shares of Stock may be acquired
through the exercise of an Option. The Company will return to each Participant's
Payroll Account any amount tendered in the exercise of an Option remaining after
the maximum number of whole shares has been purchased.

                                  ARTICLE VII.
                           LEGAL COMPLIANCE CONDITIONS

         7.1 General. No Option shall be exercisable, no Stock shall be issued,
no certificates for shares of Stock shall be delivered, and no payment shall be
made under this Plan except in compliance with all federal and state laws and
regulations (including, without limitation, withholding tax requirements),
federal and state securities laws and regulations and the rules of all national
securities exchanges or self-regulatory organizations on which the Company's
shares may be listed. The Company shall have the right to rely on an opinion of
its counsel as to such compliance. No Option shall be exercisable, no Stock
shall be issued, no certificate for shares shall be delivered and no payment
shall be made under this Plan until the Company has obtained such consent or
approval as the Committee may deem advisable from any regulatory bodies having
jurisdiction over such matters.

         7.2 Stock Holding Periods. In order for tax treatment under section
421(a) of the Code to apply to Stock acquired hereunder, the Participant is
generally required to hold such shares of Stock for two years after the Grant
Date of an Option through which shares of Stock were acquired and for one year
after the transfer of Stock to the Participant. A person holding Stock acquired
hereunder who disposes of shares prior to the expiration of such holding periods
shall notify the Company of such disposition in writing.

         7.3 Stock Legends. Any certificate issued to evidence shares of Stock
for which an Option is exercised may bear such legends and statements as the
Company or Committee may deem advisable to assure compliance with federal and
state laws and regulations.

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                                               2000 EMPLOYEE STOCK PURCHASE PLAN

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<PAGE>   10

         7.4 Representations by Participants. As a condition to the exercise of
an Option, the Company may require a Participant to represent and warrant at the
time of any such exercise that the shares are being purchased only for
investment and without any present intention to sell or distribute such shares.
At the option of the Company, a stop transfer order against any shares of stock
may be placed on the official stock books and records of the Company, and a
legend indicating that the stock may not be pledged, sold or otherwise
transferred unless an opinion of counsel was provided (concurred in by counsel
for the Company) and stating that such transfer is not in violation of any
applicable law or regulation may be stamped on the stock certificate in order to
assure exemption from registration. The Committee may also require such other
action or agreement by the Participants as may from time to time be necessary to
comply with the federal and state securities laws. This provision shall not
obligate the Company or any Affiliate to undertake registration of options or
stock hereunder.

                                  ARTICLE VIII.
                               GENERAL PROVISIONS

         8.1 Effect on Employment. Neither the adoption of this Plan, its
operation, nor any documents describing or referring to this Plan (or any part
thereof) shall confer upon any employee any right to continue in the employ of
the Company or an Affiliate or in any way affect any right and power of the
Company or an Affiliate to terminate the employment of any employee at any time
with or without assigning a reason therefor.

         8.2 Unfunded Plan. The Plan, insofar as it provides for grants, shall
be unfunded, and the Company shall not be required to segregate any assets that
may at any time be represented by grants under this Plan. Any liability of the
Company to any person with respect to any grant under this Plan shall be based
solely upon contractual obligations that may be created hereunder. No such
obligation of the Company shall be deemed to be secured by any pledge of, or
other encumbrance on, any property of the Company.

         8.3 Rules of Construction. Headings are given to the articles and
sections of this Plan solely as a convenience to facilitate reference. The
masculine gender when used herein refers to both masculine and feminine. The
reference to any statute, regulation or other provision of law shall be
construed to refer to any amendment to or successor of such provision of law.

         8.4 Governing Law. The internal laws of the state of incorporation of
the Company shall apply to all matters arising under this Plan, to the extent
that federal law does not apply.

         8.5 Compliance With Section 16 of the Exchange Act. With respect to
persons subject to Section 16 of the Exchange Act, transactions under this Plan
are intended to comply with all applicable conditions of Rule 16b-3 or its
successors under the Exchange Act. To the extent any provision of this Plan or
action by Committee fails to so comply, it shall be deemed null and void to the
extent permitted by law and deemed advisable by the Committee.

         8.6 Amendment. The Board may amend or terminate this Plan at any time;
provided, however, an amendment that would have a material adverse effect on the
rights of a Participant

                                            HEALTHCARE REALTY TRUST INCORPORATED
                                               2000 EMPLOYEE STOCK PURCHASE PLAN

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<PAGE>   11

under an outstanding Option is not valid with respect to such Option without the
Participant's consent, except as necessary for Options to maintain qualification
under the Code; and provided further that, to the extent that such approval is
required for compliance with Rule 16b-3 of the Exchange Act, the provisions of
the Plan relating to the number of shares granted to persons subject to section
16(b) of the Exchange Act, the timing of such grants and the determination of
the exercise price shall not be amended more than once every six months, other
than to comport with changes in the Code, the Employee Retirement Income
Security Act of 1974, or the rules thereunder. Provided further that the
shareholders of the Company must, within 12 months before of after the adoption
thereof, approve any amendment that increases the number of shares of Stock in
the aggregate which may be issued pursuant to Options granted under the Plan.

         8.7 Effective Date of Plan. This Plan shall be effective and Options
may be granted under this Plan on and after the date of its adoption by the
Board, provided that no Option will be effective or exercisable unless and until
this Plan is approved by shareholders of the Company in a manner that satisfies
Treasury Regulation ss. 1.423-2 within 12 months of the date that the Board took
action to adopt the Plan. All Options granted under the Plan will become void
immediately following the 12-month anniversary of the date the Board adopted the
Plan if such approval by shareholders has not yet been obtained.

         IN WITNESS WHEREOF, the undersigned officer has executed this Plan on
this the 7th day of February, 2000.

                                  HEALTHCARE REALTY TRUST
                                  INCORPORATED

                                  /s/ Roger O. West
                                  -------------------------------------------
                                  Roger O. West
                                  Executive Vice President & General Counsel

                                            HEALTHCARE REALTY TRUST INCORPORATED
                                               2000 EMPLOYEE STOCK PURCHASE PLAN

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