2001 GENERAL INCENTIVE PLAN

Purpose:      The Riggs' General Incentive Plan is designed to provide the
              opportunity to participants of the Market Plan to realize earnings
              above and beyond their base pay, contingent on the success of the
              Bank and on their individual performance. The goal of this plan is
              to accomplish the following:

              1.       Achieve or exceed the strategic goals of the primary
                       business lines of the Bank;
              2.       Align executive compensation to financial results of the
                       Bank; and
              3.       Reward and retain those who have contributed to the
                       success of the Bank.

Eligibility:  Grades 55 and above, except those included in other incentive
              plans.

Plan Features:The General Incentive Plan award is based on the following
              factors:

              1.       Group and Corporate Financial Performance;
              2.       Individual Performance;
              3.       Grade Levels (55 through 64).

              The Bank uses the following performance measures to determine
              incentive funding based on the following grade/position
              categories:

              1.       Corporate Executives (Grade 62 and Above): 100% of
                       incentive funding will be derived from the Corporate Net
                       Income performance.

              2.       Grade 55 - 61:
                       a.    Line Executives in the following Groups will derive
                             50% of their incentive funding from Corporate Net
                             Income performance and 50% from their respective
                             Group Net Income performance:

                             o        Community Banking
                             o        International Banking
                             o        Relationship Banking
                             o        Riggs & Co.

                        b.   Line Management in the following line groups will
                             derive 80% of their incentive funding from the Net
                             Income performance of their respective Group; and
                             20% for the Net Income performance of the
                             Corporation:

                             o        Community Banking
                             o        International Banking
                             o        Relationship Banking
                             o        Riggs & Co.

                         c.  Staff Executives and Management Staff will derive
                             20% of their incentive funding from each of the
                             above line groups for a total of 80%, based on the
                             line group's Net Income performance and 20% from
                             the Net Income performance of the Corporation.

                             o        Staff Executives and Management Staff will
                                      also have their incentive award
                                      consideration based on effectively
                                      managing budget expenses. Failure to meet
                                      expense budget targets will result in a
                                      10% reduction in the total incentive
                                      award.


                                      -1-

<PAGE>

                             o        Executive management will consider
                                      exceptions to address income and/or
                                      expenditures that are extraordinary or
                                      non-recurring and outside the control of
                                      the Plan participant.

Plan Year:             January 1, 2001 - December 31, 2001

Plan Administration:   Human Resources Group

Policy Administration: Incentive Plan Committee

Incentive Opportunity: Incentive awards are calculated as a percentage of the
                       participant's market rate (mid-point of range) of pay.
                       The table below displays the percentage target for each
                       grade at 100% of Net Income performance goal and merit
                       performance rating of 3. Actual awards will vary based on
                       Net Income results at both the Group and Corporate level
                       and the plan participant's individual performance.


-------------------------------- -----------------------------------------------
            Grade                                        Target Percentage
-------------------------------- -----------------------------------------------
           55 - 56                                             6%
-------------------------------- -----------------------------------------------
           57 - 59                                            10%
-------------------------------- -----------------------------------------------
           60 - 61                                            12%
-------------------------------- -----------------------------------------------
           62 and Above                                       16%
-------------------------------- -----------------------------------------------

Period of Performance & Timing
of Payment:            The plan is effective from January 1, 2001 through
                       December 31, 2001. Performance results are tallied at the
                       end of the year reviewed by management and approved by
                       the Compensation Committee of the respective Boards.
                       Incentives are then paid by the end of the first quarter
                       following the Plan year.

Proration:             Any participant who joins the Bank or is promoted to a
                       grade 55 and above position during the plan year is
                       eligible, for a prorated award based on the number of
                       full months of participation. Proration is done on a
                       monthly basis. Eligibility for a new plan participant
                       starts on the first business day of the month following
                       the date of hire or reclassification.

Payment                Eligibility: In order to receive a payment from this
                       Plan, the participant must be actively employed in an
                       eligible position at the time payment is made. Plan
                       participants who have terminated because of death, formal
                       retirement, or disability will receive a prorated payment
                       for the period of active employment in accordance with
                       the above paragraph labeled Proration.

Tax & Benefit Implication of
Awards:                Incentive payments under this plan are treated as
                       ordinary income and will be subject to all applicable
                       payroll taxes in the year in which payment is received.
                       However, these payments will not be eligible for any
                       deferrals into any Riggs Amended Pension Plan, the Riggs
                       401(k)Plan, nor will any 401(k) matching occur with
                       respect to these payments. Also, these payments will only
                       be used in computing employee benefits as described in
                       the appropriate benefit plan documents.

Conditions:            Participants in the General Incentive Plan agree to
                       comply with the following:

                       1.       Customers: During and for 12 months after the
                                date on which the participant's employment with
                                the Bank ends under any circumstances,
                                the participant will not directly or indirectly,
                                individually or as part of or on behalf of any
                                other person, employer or entity, provide
                                products or services to, or solicit, or attempt
                                to solicit, for the purposes of providing
                                products or services, that are similar to the
                                Bank's products or services, any customer of the
                                Bank with whom the participant had direct
                                contact, in person or by phone or
                                correspondence, on behalf of the Bank during the
                                12 months preceding the end of the participant's
                                employment.

                                      -2-
<PAGE>

                       2.       Employees: During and for 12 months after the
                                date on which the participant's employment with
                                the Bank ends under any circumstances, the
                                participant agrees not, directly or indirectly,
                                hire, or attempt to solicit for hire, on behalf
                                of the participant or anyone else, any persons,
                                who are or have been employed by the Bank, until
                                at least 12 months after the participant's
                                employment with the Bank ends.

                       3.       This document does not in any way constitute an
                                employment agreement.  At all times while the
                                participant is employed by the Bank, either
                                before or after completion of the Introductory
                                Period, the participant will be employed
                                "at-will", that is, the participant's employment
                                will continue only as long as it is mutually
                                agreeable to the participant and the Bank.
                                Either the participant or the Bank may end the
                                employment relationship at any time with or
                                without cause or notice.  The "at-will" nature
                                of the employment relationship can only be
                                changed by written agreement signed by the
                                participant and the Chief Operating Officer on
                                behalf of the Bank.

Exceptions:            The Bank reserves the right to make adjustments required
                       to address extraordinary events and/or to modify or
                       terminate this plan.






Acknowledged and Understood:
                              -----------------------         -----------------
                              Participant's Signature                Date
                                      -3-

<PAGE>



                       General Incentive Plan Award Tables


Grades 55 - 56
<TABLE>
<CAPTION>

                                                                Individual Performance Rating
                         --------------------- --------------------- --------------------- --------------------- -------------------
<S>                                                    <C>                    <C>                   <C>                  <C>
                                                       1-2                    3                     4                    5


------------------------ --------------------- --------------------- --------------------- --------------------- -------------------
                                  1                     0                     0                     4%                   5%
------------------------ --------------------- --------------------- --------------------- --------------------- -------------------
     Group/                       2                     0                     6%                    7%                   9%
------------------------ --------------------- --------------------- --------------------- --------------------- -------------------
   Corporate                      3                     0                     8%                   10%                  12%
------------------------ --------------------- --------------------- --------------------- --------------------- -------------------
   Performance                    4                     0                    10%                   12%                  16%
------------------------ --------------------- --------------------- --------------------- --------------------- -------------------
                                  5                     0                    12%                   16%                  22%
------------------------ --------------------- --------------------- --------------------- --------------------- -------------------



Grades 57 - 59
                                                               Individual Performance Rating
                         --------------------- --------------------- --------------------- --------------------- -------------------
                                                       1-2                    3                     4                    5


------------------------ --------------------- --------------------- --------------------- --------------------- -------------------
                                  1                     0                     0                     5%                   7%
------------------------ --------------------- --------------------- --------------------- --------------------- -------------------
      Group/                      2                     0                    10%                   12%                  14%
------------------------ --------------------- --------------------- --------------------- --------------------- -------------------
    Corporate                     3                     0                    14%                   16%                  20%
------------------------ --------------------- --------------------- --------------------- --------------------- -------------------
    Performance                   4                     0                    18%                   22%                  30%
------------------------ --------------------- --------------------- --------------------- --------------------- -------------------
                                  5                     0                    25%                   30%                  40%
------------------------ --------------------- --------------------- --------------------- --------------------- -------------------


Grades 60 - 61
                                                               Individual Performance Rating
                         --------------------- --------------------- --------------------- --------------------- -------------------
                                                       1-2                    3                     4                    5


------------------------ --------------------- --------------------- --------------------- --------------------- -------------------
                                  1                     0                     0                     7%                   9%
------------------------ --------------------- --------------------- --------------------- --------------------- -------------------
     Group/                       2                     0                    12%                   14%                  16%
------------------------ --------------------- --------------------- --------------------- --------------------- -------------------
   Corporate                      3                     0                    16%                   20%                  24%
------------------------ --------------------- --------------------- --------------------- --------------------- -------------------
   Performance                    4                     0                    25%                   30%                  40%
------------------------ --------------------- --------------------- --------------------- --------------------- -------------------
                                  5                     0                    40%                   45%                  60%
------------------------ --------------------- --------------------- --------------------- --------------------- -------------------


Grades 62 & Above
                                                                Individual Performance Rating
                         --------------------- --------------------- --------------------- --------------------- -------------------
                                                       1-2                    3                     4                    5


------------------------ --------------------- --------------------- --------------------- --------------------- -------------------
                                  1                     0                     0                     8%                  12%
------------------------ --------------------- --------------------- --------------------- --------------------- -------------------
    Group/                        2                     0                    16%                   18%                  22%
------------------------ --------------------- --------------------- --------------------- --------------------- -------------------
  Corporate                       3                     0                    22%                   26%                  30%
------------------------ --------------------- --------------------- --------------------- --------------------- -------------------
  Performance                     4                     0                    30%                   35%                  50%
------------------------ --------------------- --------------------- --------------------- --------------------- -------------------
                                  5                     0                    50%                   75%                  100%
------------------------ --------------------- --------------------- --------------------- --------------------- -------------------
</TABLE>