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                                                                     EXHIBIT 4.7

CONFIDENTIAL



Dear Mr. G. K. McDonald


SERVICE AGREEMENT


The purpose of this letter is to record the terms agreed between us on which you
will act as General Manager Fleet Management of Osprey Maritime (Europe) Ltd.
(the "Company"):-

1.   Your duties extend to Company and all of its subsidiaries, associates and
     affiliates from time to time, (the "Group"). During the continuance of your
     employment you will devote all your time, attention and skill during
     working hours to the affairs of the Group, use your best endeavours to
     promote the interests of the Group, at all time obey the reasonable and
     lawful instructions of the Chief Operating Officer Fleet Management and
     keep the respective COO. F. M. fully informed of your conduct of the
     affairs of the Group. The various offices of the Group have official
     working hours, however, and you will from time to time be expected without
     any further remuneration to work outside those hours as and when the
     occasion demands or as otherwise required by the COO. F. M. For reference
     at commencement of employment with the Company your normal working hours
     will be 40 per weeks.

2.   Your employment will commence no later than May 1998.

3.   Except with the prior approval of the Chief Executive Officer you will not
     during the continuance of your employment with the Group be directly or
     indirectly interested or engaged in any other business. However, this will
     not preclude you from holding investments in any company listed on a stock
     exchange provided that you do not hold more than 3% of the issued shares or
     other securities of any class of any one company.

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4.   Neither during nor at any time after the termination of your employment
     shall you divulge or communicate to any person or persons (except those
     persons in the Group whose province it is to know the same) nor use for
     you're your own benefit any confidential information you may receive or
     obtain in relation to the affairs of any Company in the Group or any of its
     clients and for a period of one year following the termination of your
     employment you will not directly or indirectly solicit or entice away any
     client or employee of any company in the Group.

5.   You will receive a salary at the rate of L7,500 (Pound Sterling Seven
     Thousand Five Hundred) per calendar month [monthly in arrears]. The Group
     will cooperate in arrangements to enable payment to be made in a tax
     efficient manner, bearing in mind the location of your employment from time
     to time, so as to avoid unnecessary tax. Your salary will be reviewed each
     year on 1st July.

6.   You will initially be located in London. The Group reserves the right, upon
     giving reasonable notice, to post you in the future to Singapore or other
     locations as the needs of the business may require. In such event due
     consideration will be given to any substantive change in your cost of
     living and tax circumstances resulting from such new location and, subject
     to mutual agreement, the terms of this agreement may be altered
     accordingly.

     Where the employee has children of school age, the company will ensure a
     reasonable standard of education which does not adversely affect the
     continuity of schooling during service abroad. Where this involves costs
     which the employee would not otherwise have borne whether it be at a U.K.
     boarding school or at a school in Singapore or other location as the case
     may be, the company will bear the cost. Only children in primary and
     secondary phases of education (i.e. aged 5 - 18) are normally eligible for
     consideration.

     In the event that no agreement on such posting can be reached then Clause
     18, as it relates to termination, shall apply.

7.   In the event of relocation to Singapore or other location the Company will
     pay the cost of transporting your personal effects to the extent of freight
     and packing of one 40 foot container ex London and shall pay the cost of a
     one way Business Class airfare from London for you and your family. Upon
     termination of this Service Agreement for reasons other than as set out in
     paragraph 17(b) the Company shall pay the cost of freight and packing for
     your personal effects

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     to your chosen place of re-location in an amount not exceeding one 40 foot
     container, to U.K., and a one way Business Class air fare not exceeding the
     cost of travel to U.K. for you and your family.

     While on overseas assignment the Company will provided one round trip
     economy air ticket per year to the U.K. for yourself and family.

8.   You will be entitled to receive an annual bonus at the discretion of the
     Board of Directors of the Company based upon overall Group performance, the
     relative performance of any individual Business Unit to which you may be
     assigned, and upon personal merit. The Board will make its decision on
     additional bonus after the finalization of the annual audit accounts for
     the financial year in respect of which bonuses are assessed and such bonus
     shall be payable prior to 31st March following the financial year to which
     it relates.

9.   As advised, the Company is establishing a share option scheme for employees
     within the parameters set down by the Stock Exchange of Singapore. You will
     be entitled to participate within the terms and subject to the conditions
     of the scheme.

10.  You have the alternative of being covered for pension either under the
     Company's UK Pension Scheme, a non-contributory plan which is contracted
     into the State Pension Scheme and which provides additional benefits to
     those provided by the State, including the State Earnings Related Pension
     Scheme (SERPS), or of taking out a Private Pension Plan.

     Before taking this decision, it is important that you are aware of all the
     facts pertaining to your personal and individual position. You should
     contact the Personnel Department in this respect, who will then put you in
     touch with an Independent Financial Advisor in order that you receive "best
     advice".

     In the absence of your decision to opt for a Private Pension Plan, you will
     be covered for pension purposes under the terms and conditions of the
     "Gotaas-Larsen UK Pension Scheme".

11.  You will be provided  with the use of a Company  motor car or car allowance
     appropriate to your position. The car allowance is currently L550 per month
     and is payable through the monthly

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     payroll. A petrol allowance of L110 per month is presently in force with
     the use of a company credit card.

12.  The Company shall reimburse to you all reasonable out-of-pocket expenses
     incurred by you on Group business (including reasonable to expenses of
     entertaining and travelling) which expenses shall be evidenced in such
     manner as the Company may from time to time require. You should note that
     it is Company policy to cover the cost of business class travel of flights
     of more than 3 hours duration but economy class travel only on flights of
     less than 3 hours.

13.  You will be entitled (in addition to normal public holidays in the location
     of your employment) to 25 working days paid holiday in each year of your
     employment to be taken at such time or times as may be agreed by the COO.
     F. M.

14.  The Company will pay the premiums in respects of life, health and personal
     injury insurance as agreed with you from time to time advised in writing.

15.  The Company shall provide membership of a health care scheme for you and
     your family whereby the Company shall bear all medical expenses incurred by
     you including the cost of specialist consultations and hospital treatment,
     and dental costs (excluding cosmetic work). You are entitled to a medical
     check-up every two years at the company expense.

16.  Notwithstanding illness or other incapacity you will remain entitled to
     receive salary, benefits and accommodation allowances hereunder up to a
     maximum of 26 weeks in any period of 12 months. If and where required, you
     will supply the Company with medical certificates covering any period of
     illness or other incapacity and at the Company's expense undergo a medical
     examination by a doctor appointed by the Company.

17.  Your appointment will be subject to summary termination by the Company by
     notice in writing if:-

     (a)  You are unable satisfactorily to perform your duties hereunder through
          mental or physical ill health for a period or periods totally 270 days
          in any 12 month period; or

     (b)  You have committed any serious breach or repeated or continued after
          warning any material breach of your duties or shall be guilty of
          conduct bringing yourself or any

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          Group company into disrepute or shall have become bankrupt or
          compounded with your creditors generally.

18.  Subject to the provisions relating to summary termination contained in
     paragraph 17 it is agreed that the duration of this Service Agreement shall
     be for a minimum period of eighteen months from commencement of employment
     and thereafter shall continue indefinitely or until terminated by written
     notice given by the Company to you or by you to the Company of not less
     than 6 months duration. The whole or part of this notice may be waived by
     mutual consent.

The offer is conditional subject to a satisfactory  medical report. If you agree
to the terms of this letter, please sign and return the enclosed copy.


Yours sincerely,


For an on behalf of
OSPREY MARITIME LIMITED


/s/ R. T. Watson
----------------

CAPTAIN R. T. WATSON
CHIEF OPERATING OFFICER FLEET MANAGEMENT

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                                 PROMISSORY NOTE

For value received, the undersigned promises to pay to the order of Osprey
Maritime (Europe) Ltd, a Bermudan corporation (the "Company"), the principal sum
of

L20,900

to be repaid in MONTHLY instalments of

L317.55

commencing with May 1998's salary payment.

This loan carries a 3 (three) per cent per annum interest charge, which will be
calculated annually on the balance outstanding at the calculation point.

If for any reason whatsoever my employment is terminated with the Company, I
agree that on such date the entire outstanding balance of said note, including
any unpaid interest charges, shall be due and payable.

The Company shall also have the right to off-set the balance outstanding on the
loan together with interest due against the amount due from my Group Insurance
Policy in the event of my death and is authorised to deduct the monthly
repayments and interest from my monthly salary payments.

At any time during the 72 month period the maker may, at his discretion, pay
back all or part of the loan amount.

In the event the maker shall default on any payment provided for herein (i) the
full amount then remaining shall, at the option of the holder, immediately
become due and payable, and (ii) the maker shall pay all reasonable costs of
collection incurred by the Company, including, but not limited to reasonable
attorneys fees and disbursements.

This note shall be construed, enforced and interpreted under the laws of
England.

Date 21/4/98

Maker /s/ [ILLEGIBLE]
      --------------------

Witness /s/ R.J. Stewart
        ------------------

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[OSPREY MARITIME LIMITED LETTERHEAD]

                                                                BY FAX / COURIER

GRAEME MCDONALD, ESQ                                         22nd September 1999
Osprey Maritime (Europe) Limited
43-45 Portman Square
London
ENGLAND                                                   PRIVATE & CONFIDENTIAL


Dear Graeme,

I am pleased to formally confirm your promotion as discussed last week.

In addition to your current responsibilities as General Manager Fleet Management
for the Osprey Group with effect from 1st September 1999 you are appointed as
General Manager of the London Office responsible for administrative oversight of
that office. Functional reporting lines for staff in London will be to the
various different departmental heads.

In recognition of these additional responsibilities and the excellent work you
have done in Fleet Management your salary is increased to L135,000 per annum
effective from 1st September 1999.

I also confirm that a two year notice period will apply in the event that the
Company decides to terminate your employment with the Company. This will not
apply in the event of termination resulting from gross negligence, dishonesty on
your part or other just cause or in the event that you decide to resign from
your position at your own volition.

Your reporting line is to the CEO however, I wish to reinforce the conclusions
of recent discussions held with both you and your colleagues regarding the
current reorganization process which recognized the need for cooperation and
constructive dialogue with our colleagues to ensure that the Company's
activities develop in a coordinated and structured manner and I seek your full
support to encourage such an open culture.

You have my full support in your new role and I look forward to working closely
with you in our mutual efforts to place the Company on a firm footing.

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[OSPREY MARITIME LIMITED LOGO]

                                                         OSPREY MARITIME LIMITED

                                                        PRIVATE AND CONFIDENTIAL
                                           GRAEME MCDONALD - 22ND SEPTEMBER 1999


Please confirm your acceptance of the foregoing by signing and returning the
attached - copy of this letter.


Yours sincerely,                                   Signed in token of acceptance


/s/ T.S.C. Cottew
T.S.C. COTTEW                                      GRAEME MCDONALD
Chairman and CEO                                   Date