INVESTMENT MANAGEMENT AGREEMENT

<PAGE>

                                                                   Exhibit 10.21

                          INVESTMENT SERVICES AGREEMENT

     This INVESTMENT SERVICES AGREEMENT (the "Agreement") is made as of the 3rd
day of April, by and between RAM REINSURANCE COMPANY LTD, a Bermuda insurance
company (the "Client"), and MBIA CAPITAL MANAGEMENT CORP., a Delaware
corporation (the "Advisor") and shall become effective on May 1, 2003 (the
"Effective Date").

                                    RECITALS

     WHEREAS, Client seeks investment advisory services in connection with
certain assets owned by it; and

     WHEREAS, Advisor is in the business of providing investment advisory
services; and

     WHEREAS, Client desires to retain Advisor to render advice and services to
Client pursuant to the terms and conditions of this Agreement and Advisor is
willing to furnish such advice and services.

     NOW THEREFORE, in consideration of the covenants and the mutual promises
hereinafter set forth, the parties hereto mutually agree as follows:

     1.   Authority of the Advisor. (a) Advisor shall have full power to manage
          and direct the investments of and for Client's account (the
          "Account"), without prior consultation with Client, subject, however,
          to the limitations referred to in clause (b) of this paragraph 1 and
          paragraph 5 hereof. This discretionary authority makes the Advisor
          agent and attorney-in-fact with full power and authority on behalf of
          the Account (i) to buy, sell, exchange, convert and otherwise trade in
          any and all stocks, bonds and other securities and investments as the
          Advisor may select; and (ii) to establish and deal through accounts
          with one or more securities brokerage firms, dealers or banks as
          Advisor may select; provided, however, that none of such firms,
          dealers or banks shall be a person or entity that controls, or is
          controlled by, or is under common control with, Advisor. This
          discretionary authority shall remain in full force and effect for the
          duration of this Agreement or until the Advisor receives written
          notice from Client of its termination in accordance with the terms of
          this Agreement. Advisor will not be responsible for giving client
          investment advice or taking any other action with respect to any
          assets of Client not included in the Account.

<PAGE>

     (b)  Notwithstanding any other provision of this Agreement, it is
          understood and acknowledged by the parties hereto that Client shall at
          all times have ultimate control of and responsibility with respect to
          the functions which Client is delegating to Advisor pursuant to the
          terms of this Agreement. In furtherance of the foregoing, Advisor
          shall follow the instructions of Client's Chief Executive Officer.
          Chief Financial Officer or Chief Underwriting Officer in connection
          with the management and investment of Account.

     2.   Custody of Assets. Client has appointed Fleet National Bank and
          Deutsche Bank Trust Company Americas, as its custodians (the
          "Custodians"). The Custodians will take and have possession of the
          assets of the Account. Advisor shall not act as custodian for Client's
          Account or take or have possession of any of the assets thereof, but
          may issue instructions to the Custodian of such assets as required in
          connection with the settlement of transactions effected by Advisor
          hereunder. Accounts and records maintained by Advisor in connection
          with this Agreement shall be the property of the Client.
          Notwithstanding the foregoing, or any other provisions of this
          Agreement to the contrary, Client and Advisor acknowledge and agree
          that Advisor shall at all times own and have custody of its own
          general corporate accounts and records. Client shall pay all fees of
          Custodians.

     3.   Brokerage. To the extent permitted in paragraph 1 of this Agreement,
          Advisor may place orders for the execution of transactions for the
          Account with or through such brokers, dealers, or banks as Advisor may
          select and, complying with Section 28(e) of the Securities Exchange
          Act of 1934, may select brokers-dealers charging a commission in
          excess of the commission another broker-dealer would have charged. The
          Advisor and other clients advised by the Advisor may benefit from any
          information received from broker-dealers selected in connection with
          Client's Account. Advisor may (but is not obligated to) purchase or
          sell the same securities for several clients at approximately the same
          time and combine or batch such orders. This may result in differences
          in prices and commissions or other transaction costs from those that
          might have been obtained had such orders been placed independently.

     4.   Administrative Services. The Client hereby engages the Advisor to
          provide those administrative and securities management services
          described in Exhibit A attached hereto.

     5.   Legal Proceedings. Advisor will not advise or act for Client in any
          legal proceedings, including bankruptcies or class actions, involving
          securities


                                       2

<PAGE>

          held in the Account or issuers of those securities. Advisor will
          provide Client with notice of the bankruptcy of such issuer and of any
          class action in which Client as owner of a security or investment held
          in the Account would be eligible to participate as a plaintiff.

     6.   Risk. Advisor cannot guarantee the future performance of the Account,
          promise any specific level of performance or promise that its
          investment decisions, strategies or overall management of the Account
          will be successful. The investment decisions Advisor will make for
          Client are subject to various market, currency, economic, political
          and business risks, and will not necessarily be profitable.

     7.   Investment Manager Independent. For all purposes of this Agreement,
          the Advisor shall be deemed to be an independent contractor and shall
          have no authority to act for, bind or represent the Client or the
          Client's shareholders in any way, except as described herein, and
          shall not otherwise be deemed to be an agent of the Client. Nothing
          contained herein shall create or constitute the Advisor and the Client
          as a member of any partnership, joint venture, association, syndicate,
          unincorporated business or other separate entity, nor shall anything
          contained herein be deemed to confer on any of them any express,
          implied, or apparent authority to incur any obligation or liability on
          behalf of any other person.

     8.   Sub-Advisors and Consultants. Advisor may, at its own expense, employ
          other persons to furnish to Advisor statistical and other factual
          information, advice regarding economic factors and trends, information
          with respect to technical and scientific developments, and such other
          information, advice and assistance as Advisor may desire; provided,
          however, that such sub-advisors and consultants shall not have
          authority to make investment decisions for Client's Account.

     9.   Investment Objectives and Guidelines. Client has provided Advisor with
          a written Statement of Investment Guidelines (the "Guidelines") in the
          form attached hereto as Exhibit B and incorporated herein by
          reference. Advisor agrees to at all times be in compliance with the
          Guidelines when making investments for Client's Account. Client shall
          give Advisor prompt written notice of any investments made for
          Client's Account which Client believes to have been made outside the
          Guidelines. Client may change or modify the Guidelines from time to
          time by providing the Advisor reasonable advance written notice of
          such change or modification provided, that Client may not amend the
          Guidelines to impose additional monitoring, reporting, or other
          material obligations on the Advisor without the Advisor's written
          consent. Neither Advisor's acceptance of the


                                       3
<PAGE>

          Guidelines, nor any other provision of this Agreement shall be
          considered a guaranty that any specific investment performance result
          will be achieved. In the event of an amendment to the Guidelines, the
          parties shall mutually agree to an appropriate fee schedule for any
          additional asset class not contemplated hereunder, and if the parties
          cannot mutually agree in good faith to an appropriate fee schedule
          within 10 days of the receipt of notice by the Advisor, Client shall
          have the right to select another investment manager for the applicable
          portion of the Account, provided however, that in such event the
          Client shall provide the Advisor with written notice of the identity
          of such other investment manager.

     10.  Allocation of Charges and Expenses, (a) Advisor shall furnish at its
          own expense executive, supervisory and other personnel services,
          office space, equipment, utilities and telephone services in
          connection with supplying the investment management, advisory,
          statistical, analytical and research services contemplated by this
          Agreement.

     (b)  Custodian fees, transfer agent fees and brokerage costs, fees and
          commissions will be charged to Client's Account.

     (c)  For all reasonable expenses not otherwise covered in subsections (a)
          and (b) above, it is understood that Client will pay or reimburse
          Advisor for such expenses, including, without limitation, governmental
          fees, interest charges, taxes, fees and expenses of independent
          auditors, legal fees and other expenses connected with the execution
          of security transactions or the purchase or sale of any assets in the
          Account or the performance by Advisor of any other duties under this
          Agreement or any actions taken by Advisor at the request of Client.
          Except for taxes, governmental fees and any other expenses outside of
          Advisor's control, Advisor will notify Client not less than five (5)
          business days prior to incurring any individual expense under this
          subsection (c) and Client shall have five (5) business days from
          receipt of such notice within which to notify Advisor of its
          disapproval of any such expense. Failure of Client to so notify
          Advisor of its disapproval within five (5) business days shall be
          deemed Client's approval of such expense.

     (d)  Advisor shall provide Client, no later than ten (10) business days
          following the end of each calendar month, with a (i) summary of the
          investment transactions and (ii) all monthly reports listed on Exhibit
          A attached hereto for that month.

     (e)  Advisor shall provide Client, quarterly in arrears, with a statement