Document:

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                                                                   EXHIBIT 10.28

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                               THIRD AMENDMENT TO
                                 LEASE AGREEMENT

                             Dated as of May 7, 1997

                                     between

                            WILMINGTON TRUST COMPANY,
                       not in its individual capacity but
                            solely as Owner Trustee,
                                     Lessor

                                       and

                     EVERGREEN INTERNATIONAL AIRLINES, INC.,
                                     Lessee

                       One Boeing Model 747-273C Aircraft
                                       and
                         Three Douglas DC-9-33F Aircraft

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          Counterpart No.      of       serially numbered, manually executed
                         -----    -----
          counterparts. To the extent, if any, that this Lease Amendment
          constitutes chattel paper under the UCC, no security interest in this
          Lease Amendment may be created through the transfer and possession of
          any counterpart other than Counterpart No. 1.

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     THIRD AMENDMENT TO LEASE AGREEMENT, dated as of May 7, 1997 (the
"Amendment"), between WILMINGTON TRUST COMPANY, a Delaware banking corporation,
not in its individual capacity, except as expressly set forth herein, but solely
as Owner Trustee under the Trust Agreement (the "Lessor"), and EVERGREEN
INTERNATIONAL AIRLINES, an Oregon corporation (the "Lessee").

     WHEREAS, the parties hereto entered into the Lease Agreement, dated as of
February 25, 1986, as amended by the Amended and Restated Lease Amendment dated
as of August 31, 1987, and by the Second Amended and Restated Lease Amendment
dated as of September 29, 1995, counterparts of which, along with each of the
Lease Supplements thereto, have been recorded by the FAA and assigned conveyance
numbers as set forth in Annex A hereto (as amended, the "Lease," terms defined
therein are used herein as therein defined); and

     WHEREAS, in connection with a re-financing by the Lessor of its interest in
the Aircraft and the Lease, the parties hereto wish to amend the Lease, among
other things, to include therein provisions, such as indemnification and Events
of Default formerly contained in agreements which, after such re-financing, will
no longer be of any further force and effect;

     NOW, THEREFORE, the parties hereto agree as follows:

     1. The Lease is hereby amended as follows:

     (a) Section 1 is amended by deleting the following definitions in their
entirety: "Concord/ABN-AMRO Loan Agreement," "Junior Lien," "Loan Participant,"
"Original Mortgage," and "Participation Agreement."

     (b) Section 1 is amended by amending the definitions of "Mortgage," and
"Operative Documents" to read in their entirety as follows:

     "Mortgage" means the First Priority Chattel Mortgage and Security
Agreement, dated as of the date hereof, between Lessor and Lender.

     "Operative Documents" means this Lease, the Mortgage, the Trust Agreement,
the Guaranty and Subordination Agreement, the Purchase Documents, the Note, the
Lease Supplement covering each Aircraft, the Trust Agreement and Mortgage
Supplement covering each Aircraft and any other document which may be delivered
in connection

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herewith or therewith on or after the date hereof.

     (c) Section 1 is amended to add the following definition to be inserted in
the appropriate alphabetical order:

     "Lender" means FINOVA Capital Corporation, a Delaware corporation.

     (d) Section 3(a) is amended by deleting therefrom the words: "continue for
a period of forty-eight (48) months; [DISCUSS AUTOMATIC EXTENSION AND PREPAYMENT
THEREFOR EQUALING REMAINING BALANCE]" and substituting therefor the following:
"end on March 29, 2007."

     (e) A new Section 4A is added immediately after Section 4 to read as
follows:

     "Section 4A. Lessee's Representations, Warranties and Indemnities.

          (a) In General. Lessee represents, warrants and covenants to each of
the Mortgagee and the Owner Participant that as of the date hereof:

               (i) Lessee is a corporation duly organized and validly existing
          in good standing pursuant to the laws of the State of Oregon, is a
          "citizen of the United States" within the meaning of 49 U.S.C. S
          40102(a)(15), is "an air carrier operating under a certificate of
          convenience and necessity issued by the Civil Aeronautics Board"
          within the meaning of Section 1110 of the United States Bankruptcy
          Code, has the corporate power and authority to own or hold under lease
          its properties wherever located or under and to enter into and perform
          its obligations under this Lease, each Lease Supplement, the Guaranty
          and Subordination Agreement, and each Operative Document to which it
          is a party and is duly qualified to do business as a foreign
          corporation in good standing wherever necessary to carry on its
          present business and operations and to own or lease its properties;

               (ii) the execution, delivery and performance by Lessee of this
          Lease, the Guaranty and Subordination Agreement and each other
          Operative Document to which it is a party have been duly authorized by
          all necessary corporate action on the part of Lessee, do not require
          any stockholder approval, or approval or consent of any trustee or
          holders of any indebtedness or obligations of Lessee except such as
          have been duly

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          obtained or will have been duly obtained, and none of such agreements
          contravenes any law, judgment, governmental rule, regulation or order
          binding on Lessee or the Articles of Incorporation or By-Laws of
          Lessee or contravenes the provisions of, or constitutes a default
          under, or results in the creation of any Lien (other than as permitted
          under the Lease) upon the property of Lessee under, any indenture,
          mortgage, contract or other agreement to which Lessee is a party or by
          which it or its properties may be bound or affected;

               (iii) neither the execution and delivery by Lessee of this Lease,
          each Lease Supplement, the Guaranty and Subordination Agreement or
          each other Operative Document to which it is a party nor the
          performance by Lessee of its obligations hereunder or thereunder
          requires the consent or approval of, the giving of notice to, or the
          registration with, or the taking of any other action in respect of,
          any Federal, state or foreign governmental authority or agency, except
          as specified in Section 7(a) hereof;

               (iv) this Lease, each Lease Supplement, the Guaranty and
          Subordination Agreement and each other Operative Document to which it
          is a party will each constitute legal, valid and binding obligations
          of Lessee, enforceable against Lessee in accordance with the
          respective terms thereof;

               (v) there are no pending or threatened actions or proceedings
          before any court or administrative agency which (A) involve the Leased
          Property or (B) could reasonably be expected to materially adversely
          affect the ability of Lessee to perform its obligations under the
          Operative Documents;

               (vi) the Mortgage covering the Leased Property, creates the
          security interests in the Mortgaged Property (as such term is defined
          in the Mortgage) it purports to create, and, except for (A) the
          registration of the Aircraft pursuant to the Federal Aviation Act in
          the name of the Owner Trustee, (B) the filing for recording pursuant
          to the Federal Aviation Act of (1) the Lease with the Lease
          Supplements covering the Leased Property, the Mortgage and Mortgage
          Supplements covering the Leased Property attached thereto as exhibits,
          (2) the Mortgage and Mortgage Supplements, and (3) the FAA Bill of
          Sale for each Aircraft, (C) the filing of financing

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          statements (and continuation statements at periodic intervals) with
          respect to the security and other interests created by the Operative
          Documents under the Uniform Commercial Codes of Oregon and Delaware
          and such other States as may be specified in the opinion furnished
          pursuant to the Loan Agreement (as defined in the Mortgage), and (D)
          the taking of possession by the Mortgagee of the "Original"
          counterparts of the Lease and the Lease Supplements, no further
          action, including any filing or recording of any document (including
          any financing statement in respect thereof under Article 9 of the
          Uniform Commercial Code of any applicable jurisdiction), is necessary
          in order to establish and perfect the Owner Trustee's title to and the
          Mortgagee's security interest in the Leased Property as against Lessee
          and any third parties in any applicable jurisdiction within the United
          States;

               (vii) there has not occurred any event which constitutes an Event
          of Default hereunder which is presently continuing;

               (viii) the chief executive office (as such term is used in
          Article 9 of the Uniform Commercial Code) of the Lessee and the office
          where the Lessee will keep its corporate records concerning the Leased
          Property are located at 3850 Three Mile Lane, McMinnville, Oregon
          97128;

               (ix) Evergreen International Aviation, Inc., an Oregon
          corporation ("Evergreen") is the owner of all of the issued and
          outstanding capital stock of the Lessee and and Mr. Smith and his
          immediate family are the indirect beneficial owners of all of the
          issued and outstanding capital stock of Evergreen; and

               (x) the Owner Trustee, as Lessor under the Lease, and the
          Mortgagee, as assignee of the Owner Trustee are each entitled to the
          protection of Section 1110 of Title 11 of the United States Code with
          respect to each of the Aircraft.

          (b) General Tax Indemnity.

               (i) Except as provided in Section 4A(b)(ii) hereof, Lessee shall

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          pay, and on written demand shall indemnify and hold harmless the Owner
          Participant, the Mortgagee, the Owner Trustee, in its individual
          capacity and as trustee under the Trust Agreement, the Trust Estate,
          the Mortgaged Property (as defined in the Mortgage) and each holder of
          the Note (each thereof, with its respective affiliates, successors and
          permitted assigns, being referred to as an "Indemnitee), from and
          against, any and all Taxes (as herein defined) imposed against any
          Indemnitee, Lessee, the Leased Property or any part thereof or
          interest therein, by any Federal, state or local government or taxing
          authority in the United States or by any taxing authority or
          governmental subdivision of a foreign country in connection with or
          relating to (A) the construction, financing, refinancing, purchase,
          acquisition, acceptance, rejection, delivery, nondelivery, transport,
          ownership, registration, reregistration, assembly, possession,
          repossession, operation, location, use, condition, maintenance,
          repair, sale, return, abandonment, preparation, installation, storage,
          redelivery, manufacture, leasing, subleasing, modification,
          rebuilding, importation, transfer of title, transfer of registration,
          exportation or other application or disposition of, or the imposition
          of any Lien for the incurrence of any liability to refund or pay over
          any amount as the result of any Lien on, the Leased Property or any
          part thereof or interest therein, (B) any amount paid or payable
          pursuant to any operative Document, (C) any or all of the Operative
          Documents, or the issuance of the Note, or the refinancing thereof and
          any other documents contemplated hereby or thereby and amendments and
          supplements hereto and thereto, (D) the payment of the principal of or
          interest on, or other amounts payable with respect to, the Note, or
          (E) otherwise with respect to or in connection with the transactions
          contemplated by the Operative Documents. The term "Taxes" shall mean
          any and all fees (including, without limitation, license and
          registration fees), taxes (including, without limitation, income,
          gross receipts, sales, use, turnover, value added, property (tangible
          and intangible), excise and stamp taxes), levies, imposts, duties,
          charges, assessments or withholdings of any nature whatsoever,
          together with any and all penalties, fines, additions to tax and
          interest thereon.

               (ii) The provisions of Section 4A(b)(i) shall not apply to Taxes
          on, based on, or measured by, the net income of any Indemnitee imposed
          by (A) the United States of America or by any state or local
          government or taxing

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          authority in the United States in which such state or locality the
          Indemnitee has its principal place of business, (B) any state or local
          government or taxing authority in any state of the United States in
          which the Indemnitee is subject to tax as a result of business or
          transactions unrelated to the transactions contemplated by this
          Agreement but only to the extent that the amount of such Taxes does
          not exceed the amount of such Taxes that would have been imposed if
          any Aircraft has not been operated in such state or locality other
          than a state or locality in which such Indemnitee has its principal
          place of business or the state in which the trust created pursuant to
          the Trust Agreement has its situs, and (C) in the case of the Owner
          Participant, the Owner Trustee and the Trust Estate, the state, or any
          taxing authority in the state, in which the trust created pursuant to
          the Trust Agreement has its situs; and further excluding any Taxes on,
          based on, or measured by, any fees or compensation received by the
          Owner Trustee in its individual capacity for services rendered in
          connection with the transactions contemplated hereby; and further
          excluding any Taxes imposed on or for the account of the Mortgagee or
          any other holder of the Note by the United States of America or any
          jurisdiction in which the Mortgagee or any other holder of the Note is
          subject to tax as a result of business or transactions unrelated to
          the transactions contemplated by this Lease on, based on, or measured
          by, its gross or net receipts or its gross or net income, or any doing
          business or similar taxes, any transfer taxes, or any withholding
          taxes, in each case related to the payment of any principal of or
          interest on the Note to any such holder; provided that notwithstanding
          the foregoing, there shall not be excluded any Taxes imposed by any
          jurisdiction on, based on, or measured by, net income resulting
          directly or indirectly (whether by inclusion of an item in gross
          income, disallowance of a credit against tax, disallowance of a
          deduction for depreciation or otherwise) from Lessee's receipt or
          right to receive any refund or credit pursuant to the 747 Purchase
          Agreement, DC-9 Purchase Agreement or from any payment by the 747
          Seller or the DC-9 Seller in satisfaction of a claim against the
          manufacturer with respect to the Leased Property under any warranty or
          indemnity provision of the 747 Purchase Agreement or the DC-9 Purchase
          Agreement, as the case may be, except to the extent that Lessee is
          required to indemnify therefor hereunder, unless, and only to the
          extent that, any such Taxes are being contested by Lessee in good
          faith, pursuant to the provisions of the following paragraph (and for
          the payment of which adequate reserves have been provided) by
          appropriate proceedings so long as such proceedings do not involve any
          material danger of sale, forfeiture or loss of the Leased Property or
          any interest therein. Lessee further agrees that, with respect to any
          payment or indemnity

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          pursuant to this Section 4A(b), such indemnity shall include any
          amount necessary to hold the Indemnitee harmless on an after-tax basis
          from all Taxes required to be paid by such Indemnitee with respect to
          such payment or indemnity under the laws of any Federal, state
          or-local government or taxing authority in the United States, or under
          the laws of any taxing authority or governmental subdivision of a
          foreign country; provided that, if any Indemnitee realizes and
          recognizes a permanent tax benefit by reason of such payment or
          indemnity (whether such tax benefit shall be by means of investment
          tax credit, depreciation deduction or otherwise), such Indemnitee
          shall pay the Lessee an amount equal to the sum of such tax benefit
          realized as the result of any payment made pursuant to this proviso,
          when, as, if and to the extent realized, but only to the extent that
          such amount does not exceed the aggregate payments by Lessee to such
          Indemnitee under this Section 4A(b) and not before Lessee shall have
          made all payments or indemnities to such Indemnitee required pursuant
          to this Section 4A(b) and any payments then due under the Lease. Each
          such Indemnitee shall in good faith use reasonable efforts in filing
          its tax returns and in dealing with taxing authorities to seek and
          claim any such tax benefit.

               (iii) If written claim is made against any Indemnitee for any
          Taxes indemnifiable pursuant to this Section 4A(b), such Indemnitee
          shall promptly notify Lessee. Payments due from Lessee to each
          Indemnitee, or from any Indemnitee to Lessee, as the case may be,
          pursuant to this Section 4A(b) shall be promptly made directly to such
          Indemnitee or Lessee in immediately available funds. If reasonably
          requested by Lessee in writing, after Lessee shall have delivered to
          such Indemnitee (i) an opinion of independent counsel reasonably
          satisfactory to such Indemnitee that there is a meritorious basis for
          a contest and (ii) a statement confirming the obligation of Lessee to
          pay an indemnity-hereunder if the claim is adversely decided), such
          Indemnitee shall upon receipt of indemnity satisfactory to it and at
          the expense of Lessee (including, without limitation, all costs,
          expenses, losses, legal and accountants' fees and disbursements,
          penalties and interest) in good faith contest in the name of such
          Indemnitee or, if requested by Lessee, contest in the name of the
          Lessee, if permissible under applicable law (or permit Lessee, if
          desired by the indemnitee, to contest in the name of Lessee) the
          validity; applicability or amount of such Taxes by, in such
          Indemnitee's sole discretion, either (i) resisting payment thereof if
          practicable, or (ii) not paying the same except under protest, if
          protest is necessary and proper, or (iii) if payment be made, using
          reasonable efforts to obtain a refund thereof in appropriate

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          administrative or judicial proceedings. Such indemnitee, at its sole
          option, may choose to pursue or to forgo any and all administrative
          appeals, proceedings, hearings and conferences with the relevant
          taxing authority with respect to such indemnified claim (unless and to
          the extent that any such appeal, proceeding, hearing or conference
          shall be required to secure judicial remedies, in which case such
          Indemnitee shall be required to pursue the same), but will (unless
          there shall be a settlement or compromise) contest such indemnified
          claim in a Court of competent jurisdiction selected by such Indemnitee
          in its sole discretion. Such Indemnitee shall, to the extent permitted
          by the applicable rules of any such court, afford the Lessee the right
          to participate, at its expense, in any such contest before any such
          court. Such Indemnitee shall, also, if and to the extent it pursues
          any administrative remedies, permit the Lessee to participate in any
          such administrative proceeding (if permitted by the relevant taxing
          authority) unless such Indemnitee was subject to taxes, assessments,
          fees or charges for which it is not indemnified under this Section
          4A(b) by such taxing authority for any period under contest (in which
          event such Indemnitee shall consult in good faith with the Lessee
          regarding the conduct of such proceeding as it relates to such
          indemnified claim but in no event shall the Lessee be entitled to
          participate in, direct or control the conduct of such proceeding).
          Sole control over the conduct of the contest will reside in such
          Indemnitee. If any Indemnitee shall obtain a refund of All or any part
          of such Taxes, paid by Lessee, such Indemnitee shall pay the Lessee
          the amount of such refunds, provided that such amount shall not be
          payable before such time as Lessee shall have made all payments or
          indemnities to such Indemnitee then due under this Lease. If in
          addition to such refund such Indemnitee shall receive an amount
          representing interest on the amount of such refund, the Lessee shall
          be paid that proportion of such interest which is fairly attributable
          to Taxes paid by Lessee prior to the receipt of such refund. The
          Lessee shall not be deemed to be in default under any of the above
          indemnification provisions so long as it or any Indemnitee shall
          diligently prosecute such contest. Any Indemnitee against whom a claim
          is made for any Taxes shall be released from its responsibility to
          contest such claim if it agrees in writing not to seek indemnification
          from the Lessee in respect of the claim to be contested. In case any
          report or return is required to be made with respect to any obligation
          of Lessee under this Section 4A(b) or arising out of this Section
          4A(b), Lessee will either make such report or return in such manner as
          will show the ownership of the Leased Property in the Owner Trustee,
          and send a copy of such report or return to the Owner Trustee, or will
          notify the Owner Trustee of such requirement and make

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          such report or return in such manner as shall be satisfactory to the
          Owner Trustee.

          All computations required to be made under this Section 4A(b) shall be
made or caused to made reasonably by the Indemnitee in question, and the results
of such computations, together with a statement describing in reasonable detail
in the manner in which such computations were made, shall be delivered to the
Lessee in writing. Within fifteen (15) days following the Lessee's receipt of
such computations, the Lessee may request that the accounting firm that
regularly prepares such Indemnitee's certified financial statements deermine
whether such computations for the Indemnitee are erroneous and such verification
shall be at Lessee's expense. If such firm shall determine that such
computations are manifestly erroneous, such firm shall determine the appropriate
computations. The computations of the Indemnitee (or, if demanded by the Lessee,
as provided in the previous sentence, of an accounting firm) shall be final,
binding and conclusive upon the Lessee, and the Lessee shall have no right to
inspect the books, records, tax returns or other documents of or relating to
such Indemnitee to verify such computations or for any other purpose. An
Indemnitee shall lose its right to be indemnified under this Section 4A(b) if it
shall enter into a settlement or compromise with the applicable authority with
respect to, or otherwise concede, any indemnified claim (other than an
indemnified claim that such Indemnitee is not required to contest under this
Section 4A(b)) without the prior written consent of the Lessee with respect to
such settlement, compromise or concessions

          (c) General Indemnity. Lessee hereby agrees to indemnify each
Indemnitee and its successors', assigns, directors, officers, employees, legal
representatives, servants and agents against, and agrees to protect, save and
keep harmless each thereof from (whether or not the transactions contemplated
herein or in any of the other Operative Documents are consummated), any and all
liabilities, obligations, losses, damages, penalties, claims, actions, suits,
and reasonable out-of-pocket costs, expenses and disbursements (including
reasonable legal fees and expenses but excluding internal costs and expenses
such as salaries and overhead), of whatsoever kind and nature (collectively
called "Expenses") imposed on, incurred by or asserted against any Indemnitee or
any successors, permitted assigns, directors, officers, employees, legal
representatives, servants or agents thereof, in any way relating to or arising
out of (A) the Operative Documents, and the transactions contemplated thereby,
the 747 Purchase Agreement, the DC-9 Purchase Agreement or any sublease of the
Aircraft or the enforcement of any of the terms of any thereof, (B) the
ownership, delivery, nondelivery, lease, sublease, possession, use, operation,
condition, sale, return or other disposition of

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the Leased Property including, without limitation, latent or other defects,
whether or not discoverable, strict tort liability and any claim for patent,
trademark or copyright infringement, or (C) the offer, sale or delivery of the
Note (the indemnity in this clause (C) to extend also to any person who controls
an Indemnitee, its successors, permitted assigns, employees, servants and agents
within the meaning of Section 15 of the Securities Act of 1933, as amended);
provided that the foregoing indemnity shall not extend, as to such Indemnitee,
to any Expense resulting from or arising out of or which would not have occurred
but for one or more of the following: (A) any representation or warranty by such
Indemnitee in the operative Documents being incorrect in any material respect;
or (B) the failure by such Indemnitee to perform or observe any agreement,
covenant or condition in any of the operative Documents including, without
limitation, the creation or existence of a Lessor Lien; or (C) the gross
negligence or willful misconduct of such Indemnitee or its respective
successors, permitted assigns, directors, officers, servants, agents or
employees; or (D) a disposition (voluntary or involuntary) by the Owner Trustee
of all or any part of its interest in the Leased Property, or any part thereof
(other than as contemplated by the Lease or the Mortgage), or by such Indemnitee
of all or any part of such Indemnitee's interest in the Leased Property, or any
part thereof or in the Operative Documents other than during the continuance of
an Event of Default under the Lease; or (E) any Taxes (as defined in Section
4A(b) hereof) whether or not Lessee is required to indemnify for such Taxes
pursuant to Section 4A(b) hereof (it being understood that Section 4A(b)
provides for Lessee's sole liability with respect to Taxes); or (F) acts or
events which occur after the return of possession of the Leased Property, or any
part thereof, to the Owner Trustee, as Lessor, or its designee pursuant to the
terms of the Lease; or (G) the offer or sale of any interest in the Trust Estate
or the Trust Agreement or any similar interest; or (H) in the case of an
Indemnitee which is the Owner Participant or the Owner Trustee (in its
individual or trust capacity) and the affiliates (as defined in the Guaranty and
Subordination Agreement), successors and permitted assigns thereof, a failure on
the part of the Owner Trustee to use ordinary care to distribute in accordance
with the Trust Agreement any amounts received and distributable by it
thereunder, and in the case of an Indemnitee which is the Mortgagee and the
affiliates, successors and permitted assigns thereof, a failure on the part of
the Mortgagee to apply, remit or distribute in accordance with the Mortgage any
amounts received and required to be applied, remitted or distributed by it
thereunder; or (I) any loss of tax benefits or increase in tax liability under
any tax law whether or not Lessee is required to indemnify therefor pursuant to
this Lease (it being understood that Section 4A(b) provides for Lessee's sole
liability with respect thereto).

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          Lessee further agrees that any payment or indemnity pursuant to this
Section 4A(c) in respect of any "Expenses" shall be in an amount which, after
deduction of all Taxes required to be paid by such recipient with respect to
such payment or indemnity under the laws of any Federal, state or local
government or taxing authority in the United States or by any taxing authority
or governmental subdivision of a foreign country, shall be equal to the excess,
if any, of (A) the amount of such Expense over (B) the net reduction in Taxes
required to be paid by such recipient resulting from the accrual or payment of
such Expense.

          Nothing in this Section 4A(c) shall be construed as a guaranty by
Lessee of payments due pursuant to the Note or of the residual value of the
Aircraft.

          (f) Section 5(a) is amended by adding immediately after the words:
"four 747 Engines," the following: "; provided, however, that all such engines
shall be Model JT9D-7J Engines," and by deleting therefrom the word: "JT9D-7F,'
and substituting therefor the following: "JT9D-7J."

          (g) Section 6 is amended by deleting from clause (i) thereof the
words: "Participants under the Mortgage and the Participation Agreement," and
substituting therefor the following: "Lender under the Mortgage and the Lender
and Participants under Section 4(A) hereof," and by deleting clause (vi) thereof
in its entirety and replaced with the words "[Intentionally Left Blank]", and
every reference in the Lease to "Loan Participant" is deleted and replaced by
the following: "Lender.".

          (h) Section 7(a) is amended by adding at the end thereof the
following: "Lessee shall maintain the Aircraft and refurbish the Engines with
m.s.n. 689542 and 685607 in accordance with the schedule set forth on Schedule
I hereto which schedule shall include, among other things, "D" Checks, Section
41 termination and pylon modifications on the 747 Aircraft; and hushkitting and
"D" Check on each of the DC-9 Aircraft".

          (j) Section 7 (c) is amended to by deleting therefrom the words "TCW
SPECIAL CREDITS, as AGENT, MORTGAGEE," and substituting therefor the following:
"FINOVA CAPITAL CORPORATION, MORTGAGEE."

          (k) Section 8(c) is amended by adding at the end thereof the
following: "Notwithstanding anything herein, Lessee shall have no right to
cannibalize or part-out

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any Aircraft."

          (1) Section 9 is amended to read in its entirety as follows:

          "Section 9. [Intentionally Left Blank]

          (m) [Reserved]

          (n) Section 14 is amended to read in its entirety as follows:

          "SECTION 14. Events of Default. Each of the following events shall
constitute an Event of Default:

          (a) Lessee shall fail to pay in full any Basic Rent or Supplemental
Rent within five business days of the date due;

          (b) Lessee shall fail to carry and maintain insurance or governmental
indemnification in lieu of insurance with respect to the Aircraft in accordance
with the provisions of Section 11, or Lessee shall operate the Aircraft at a
time when, or at a place in which, any of the insurance or governmental
indemnity in lieu thereof required by Section 11 shall not be in effect or
Lessee does any act or fails to do any act which entitles an insurer to avoid or
be excused or released from any insurance required to be maintained under this
Lease; or if notice of cancellation is given in respect of any such insurance at
times other than as permitted in any certificate of such insurance;

          (c) Lessee shall attempt to cannibalize or part-out any Aircraft or
shall fail to commence the maintenance of the Aircraft and refurbishment of the
Engines in accordance with Schedule I hereto, or, upon 30 days written notice to
Lessor and Lender, within 60 days of such scheduled date, or such later date to
which Lender may agree in its sole discretion;

          (d) Lessee or Evergreen shall fail to perform or observe any other
covenant, warranty, condition or agreement to be performed or observed by it
under any Operative Document to which it is a party and such failure shall
continue unremedied for a period of 30 days after notice from Lessor, unless
Lessee or Evergreen, as the case may be, shall be diligently proceeding to
correct such failure and such correction shall be

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completed within an additional 45 day period;

          (e) any representation or warranty made by Lessee or Evergreen in any
Operative Document or in any document or certificate furnished by Lessee or
Evergreen in connection with the Operative Documents shall have been incorrect
in any material respect at the time made and shall not have been cured within 30
days after receipt by Lessee or Evergreen, as the case may be, of written notice
from Lessor;

          (f) Lessee or Evergreen shall default in any covenant or agreement
relating to any obligation of Lessee or Evergreen for borrowed money in the
aggregate in excess of $1,000,000.00, and such failure or default shall continue
after the applicable grace period, if any, specified in the agreement or
instrument relating to such obligation and the maturity of such obligation has
been accelerated by the holders of such obligation or Lessee shall be in default
of any lease obligation involving an amount in excess of $1,000,000.00, and such
default shall continue after the applicable grace period, if any, specified in
the lease with respect thereto and the Lessor shall have terminated its lease or
required the payment of any termination, stipulated loss, liquidated damages or
similar amount; or

          (g) Lessee or Evergreen shall (a) apply for or consent to the
appointment of a custodian, receiver, trustee, liquidator or similar officer for
it or for all or any substantial part of its property, (b) make a general
assignment for the benefit of its creditors, (c) admit in writing its inability
to pay its debts generally as they become due, (d) generally not pay its debts
as they become due, (e) file a voluntary petition in bankruptcy, a voluntary
petition or an answer seeking reorganization in a proceeding under any
bankruptcy law or an answer admitting the material allegations of a petition
filed against Lessee or Evergreen in any such proceeding, (f) by voluntary
petition, application or answer, consent or otherwise institute any proceeding
or seek relief under the provisions of any law relating to bankruptcy,
insolvency, reorganization, arrangement, readjustment of debts, dissolution,
liquidation or the like in respect of the reorganization or winding-up of
corporations, or providing for an agreement, composition, extension or
adjustment with its creditors, or (g) take corporate action for the purpose of
any of the foregoing;

          (h) an order, judgment or decree shall be entered by any Governmental
Body of competent jurisdiction appointing, without the application or consent of
Lessee or Evergreen, a custodian, receiver, trustee, liquidator, sequestrator or
similar officer for

                                       13

<PAGE>

Lessee or Evergreen or for all or any substantial part of its property, or any
substantial part of the property of Lessee or Evergreen shall be sequestered,
and any such order, judgment or decree of appointment or sequestration shall
remain in force undismissed, undischarged, unstayed and unvacated for a period
of 60 days after its date of entry;

          (i) any event occurs or proceeding is taken with respect to Lessee or
Evergreen in any jurisdiction to which it is subject which has an effect
equivalent or similar to any of the events referred to in Subsections (g) or
(h); or

          (j) Lessee shall voluntarily suspend all or substantially all of its
commercial air carrier operations, or the franchises, concessions, permits,
rights or privileges required for the conduct of the commercial air carrier
business of Lessee shall be revoked, canceled or otherwise terminated or the
free and continued use and exercise thereof curtailed or prevented, and as a
result the principal business activity of Lessee shall cease to be that of a
commercial air carrier."

          (o) Section 15 is amended by deleting therefrom the words: "Section
7(e) or (f) or the Restructure Agreement," and substituting therefor the
following: "Section 14(f), (g) or (h) hereof."

          (p) Section 17(iii) is amended by deleting therefrom the words: "Loan
Participant, care of Oaktree Capital Management L.L.C., 550 South Hope Street,
22nd Floor, Los Angeles, California 90071, telecopier no. (213) 694-1599,
attention: Kenneth Liang, Esq., Senior Vice President," and substituting
therefor the following: "Lender, care of FINOVA Capital Corporation, 1850 North
Central Avenue, Phoenix, Arizona 85004; telecopier no. (602) 262-1551,
attention: Pamela Hart."

          (q) Section 16 is amended by adding at the end thereof the following
clauses (d) through (g):

          (d) Except as contemplated by the Chase Refinancing, Lessee shall not
consolidate with or merge into any other corporation or convey, transfer or
lease substantially all of its assets as an entirety to any Person (which term,
for the purposes of this Section 16(d), means any individual, corporation,
partnership, joint venture, association, joint-stock company, trust,
unincorporated organization or government or any agency or political subdivision
thereof) unless:

                                       14

<PAGE>

          (i) the corporation formed by such consolidation or into which Lessee
is merged or the Person which acquires by conveyance, transfer or lease
substantially all of the assets of Lessee as an entirety shall execute and
deliver to each Mortgagee and Owner Trustee an agreement containing an
assumption by such successor corporation or Person of the due and punctual
performance and observance of each covenant and condition of this Lease, the
Guaranty and Subordination Agreement and each Operative Document to which the
Lessee is a party to be performed or observed by Lessee;

          (ii) immediately after giving effect to such transaction, no Default
or Event of Default under the Lease or the Mortgage shall have occurred and be
continuing; and

          (iii) shall have delivered to Mortgagee and Lessor a certificate
signed by the President or any Vice President and by the Secretary or an
Assistant Secretary of Lessee, each stating that such consolidation, merger,
conveyance, transfer or lease and the assumption agreement mentioned in clause
(i) above comply with this Section 16(d) and that all conditions precedent
herein provided for relating to such transaction have been complied with.

          Upon any consolidation or merger, or any conveyance, transfer or lease
of substantially all of the assets of Lessee as an entirety in accordance with
this Section 8(n), the successor corporation or Person formed by such
consolidation or into which Lessee is merged or to which such conveyance,
transfer or lease is made shall succeed to, and be substituted for, and may
exercise every right and power of, Lessee under this Lease with the same effect
as if such successor corporation or Person had been named as Lessee herein. No
such conveyance, transfer or lease of substantially all of the assets of Lessee
as an entirety shall have the effect of releasing Lessee or any successor
corporation or Person which shall theretofore have become such in the manner
prescribed in this Section 16(d) from its liability hereunder.

          (e) The Lessee, at its expense, shall take, or cause to be taken, such
action with respect to the recording, filing, re-recording and re-filing of the
Lease, each Lease Supplement, the Trust Agreement, the Mortgage and any
financing statements or other instruments as are necessary to maintain, so long
as the Mortgage or the Lease is in effect, the perfection of the security
interests created by the Mortgage and any security interest that are claimed to
have been created by the Lease and the ownership interest of the Owner Trustee
in the Leased Property or will furnish to the Owner Trustee and the

                                       15

<PAGE>

Mortgagee timely notice of the necessity of such action, together with such
instruments, in execution form, and such other information as may be required to
enable them to take such action.

          (f) Lessee will cause to be done, executed, acknowledged and delivered
all and every such further acts, conveyances and assurances as the Owner
Trustee, the Mortgagee or such Owner Participant shall reasonably require for
accomplishing the purposes of this Lease and the other Operative Documents;
provided that any instrument or other document so executed by Lessee will not
expand any obligations or limit any rights of Lessee in respect of the
transactions contemplated by any Operative Documents. Lessee, forthwith upon
delivery of the Leased Property under the Lease, shall use its best efforts to
cause each Aircraft to be duly registered, and at all times thereafter to remain
duly registered, in the name of the Owner Trustee, under the Federal Aviation
Act, except as otherwise required or permitted hereunder, or shall furnish to
the Owner Trustee such information as may be required to enable the Owner
Trustee to make application for such registration, and shall promptly furnish to
the Owner Trustee such information as may be required to enable the Owner
Trustee timely to file any reports required to be filed by it as the lessor
under the Lease or as the owner of such Aircraft with any governmental
authority.

          (g) Lessee will cause this Lease, all Lease Supplements, the Mortgage,
all supplements to the Mortgage and any amendments thereto to be promptly filed
and recorded, or filed for recording, to the extent permitted under the Federal
Aviation Act, or required under any other applicable law.

          (r) Section 19 is amended by amending the heading thereof to read in
its entirety as follows: "Renewal Option", and by amending paragraph (a)
thereof to read in its entirety as follows: "(a) [Intentionally Left Blank]"

          (s) Section 20 is amended by inserting after each occurrence of the
words: "Leased Property" the following: "(other than Airframes)", and by
deleting therefrom each occurrence of the following words: "Airframe or".

          (r) Section 22 is amended by deleting the first paragraph thereof and
the first two sentences of the second paragraph thereof and substituting
therefor the following:

                                       16

<PAGE>

          "In order to secure the indebtedness evidenced by the Note, Lessor
pursuant to the Mortgage has granted to the Lender a security interest in all of
its right, title and interest hereunder (except as therein specified). Lessee
acknowledges receipt of a copy of the Mortgage and consents to all the terms
thereof."

          (s) Exhibit B is amended to read in its entirety in accordance with
Exhibit B attached hereto.

          (t) A new Schedule I, in the form of Schedule I attached hereto, is
added to the Lease.

          (u) The third sentence of Section 25 is hereby amended to delete the
phrase: "provided that during the Term", and replacing it with the phrase:
"provided that prior to April 29, 2005."

          (v) Section 26 is hereby amended to add the following subsections (i)
and (j):

          "(i) Lessor and Lessee agree that, for all purposes of applicable law,
this Lease constitutes an agreement of lease, and nothing contained herein shall
be construed as conveying to Lessee any right, title or interest in the Aircraft
except as a lessee only. Lessee and Lessor further agree that this Lease is a
lease for U.S. Federal income tax purposes.

          (j) Lessor and Lessee acknowledge and agree that Lender and the
Participants (and their respective successors and assigns) shall be third party
beneficiaries of this Agreement."

          2. Except to the extent amended herein, the parties hereto hereby
ratify and confirm the Lease and all of the terms thereof. All references to the
Lease in said Lease and the other Operative Documents shall refer to the Lease
as amended hereby.

          3. This Amendment may be executed in several counterparts, each of
which shall be deemed to be an original, and all such counterparts shall
constitute one and the same instrument.

                                       17

<PAGE>

          IN WITNESS WHEREOF, the parties have caused this Third Amendment Lease
Agreement to be executed as of the date first written above.

                                       WILMINGTON TRUST COMPANY,
                                       not in its individual capacity, but
                                       solely as Owner Trustee

                                       By: /s/ David A. Vanaskey, JR.
                                           -------------------------------------
                                       Name:  DAVID A. VANASKEY, JR.
                                       Title: Senior Financial Services Officer

                                       EVERGREEN INTERNATIONAL AIRLINES, INC.

                                       By: /s/ Carolyn S. Fox
                                          --------------------------------------
                                       Name: Carolyn S. Fox
                                            ------------------------------------
                                       Title: Treasurer
                                             -----------------------------------

<PAGE>

                                                                         Annex I

                                                                          Page 1

                              Description of Lease

          Lease Agreement dated as of February 25, 1986 between Wilmington Trust
Company, as owner trustee under Trust Agreement dated as of February 25, 1986,
as lessor, and Evergreen International Airlines, Inc., as lessee, which was
recorded by the Federal Aviation Administration on April 4, 1986 and assigned
Conveyance No. E87496, as supplemented, amended and amended and restated by the
following described instruments:

                          Date of          FAA             FAA
Instrument              Instrument   Recording Date   Conveyance No.
--------------------    ----------   --------------   --------------

Lease Supplement
No. 1                    03/18/86       04/04/86          E87496

Amendment Number          as of
One                      07/31/87       08/06/87          B75125

Amended and Re
stated Lease
Agreement between
Wilmington Trust
Company, as owner
trustee under
Trust Agreement
dated as of
February 25, 1986,
as amended and
restated, as lessor,
and Evergreen Inter
national Airlines,        as of
Inc., as lessee          08/31/87       10/15/87          L54296

Lease Supplement
No. 2                    08/31/87       10/15/87          L54296

Lease Supplement
No. 3                    08/31/87       10/15/87          L54296

Amendment Number          as of
One                      08/31/88       01/18/89          S81666

Lease Supplement
No. 4                    01/12/89       01/18/89          S81669

<PAGE>

                                                                         Annex I

                                                                          Page 2

                          Date of         FAA              FAA
Instrument              Instrument   Recording Date   conveyance No.
--------------------    ----------   --------------   --------------

Lease Supplement
No. 5                    01/19/89       01/20/89          P89172

Lease Supplement
No. 6                    02/03/89       02/06/89          Y31971

Amendment Number          as of
Two                      02/20/90       03/02/90          M22456

Lease Supplement
No. 7                    04/27/90       05/14/90          V80359

Amendment Number          as of
Three                    11/09/90       11/26/90          I46618

Lease Supplement
No. 8                    08/13/93       08/24/93        ZZ003954

Lease Supplement
No. 9                    12/31/93       03/03/94         JJ10762

Lease Supplement
No. 10                   03/08/95       06/02/95          E19709

Second Amended and
Restated Lease
Agreement between
Wilmington Trust
Company, as owner
trustee under Trust
Agreement dated as
of February 25, 1986,
as amended and
restated, as lessor,
and Evergreen Inter-
national Airlines,        as of
Inc., as lessee          09/29/95       11/21/95          I55209

Lease Supplement
No. 11                   10/22/96       02/06/97        UU017422

9EVER.183

<PAGE>

                                   EXHIBIT B

                               Basic Rent Schedule

A.   747 Leased Property

     Basic Rent shall be paid on the 29th day of each month of the Term, each in
the following amount:

     (i) $375,000.00 each month for 17 month, commencing on May 29, 1997, and
ending on September 29, 1998;

     (ii) $400,000.00 each month for next ten months, commencing on October 29,
1998, and ending on July 29, 1999;

     (iii) $483,518.32 each for the next 68 months, commencing on August 29,
1999, and ending on March 29, 2005; and

     (iv) $4,301,766.00, on April 29, 1997.

B.   DC-9 Leased Property

     Basic Rent for each DC-9 Leased Property shall be an amount to be
determined from time to time by Lessee and Lessor.

     Notwithstanding the above, if the Lessor elects, pursuant to the second
paragraph of the Repayment Schedule attached to the Loan Agreement, to pay the
amount of $225,000.00 of principal and interest per month after the occurrence
of an Event of Default thereunder, the Basic Rent for each DC-9 Aircraft shall
immediately thereupon be $75,000.00 per month, payable on the 29th day of each
month thereafter (the "DC-9 Basic Rent"), and Lessee shall be entitled to the
quiet enjoyment of the DC-9 Aircraft pursuant to the provisions of Section 25
hereof so long as it continues to pay the DC-9 Basic Rent and no other Event of
Default hereunder occurs thereafter; provided, however, that, if an Event of
Default hereunder had previously occurred, the payment of the DC-9 Basic Rent
shall not be deemed to cure any such Event of Default and Lessor shall be
entitled to exercise all its rights and remedies hereunder relating to the 747
Aircraft, including, without limitation, the repossession of the 747 Aircraft
and the payment of any amount specified in Section 15 hereof relating to the 747
Aircraft.

                                       20<PAGE>

                                                                   EXHIBIT 10.29

                    GUARANTY AND SUBORDINATION AGREEMENT

          THIS GUARANTY AND SUBORDINATION AGREEMENT (this "Agreement") is made
as of May 7, 1997 to and for the benefit of Wilmington Trust Company, not in its
individual capacity but solely as Trustee for the benefit of 747 Inc., Delford
M. Smith and King, Christian Inc., as Owner Participants under the Second
Amended and Restated Trust Agreement, dated as of September 29, 1995 (the
"Lessor"), by Evergreen International Aviation, Inc., an Oregon corporation (the
"Guarantor").

                                    RECITALS

          WHEREAS, Lessor and Evergreen International Airlines, Inc. ("Lessee")
have entered into the Lease Agreement, dated as of February 25, 1986, as amended
by the Amended and Restated Lease Agreement dated as of August 31, 1987, and by
the Second Amended and Restated Lease Amendment dated as of September 29, 1995,
and propose to enter into a Third Amendment to Lease Agreement (as so amended,
the "Lease");

          WHEREAS, Lessor is unwilling to enter into the Lease unless the
parties hereto enter into this Agreement in order to secure the obligations of
the Lessee under the Lease;

          WHEREAS, FINOVA Capital Corporation (the "Lender") and Lessor, as
borrower, have entered into a Secured Loan Agreement, dated as of May 7, 1997;

          WHEREAS, the Lender has required, as a condition to the loan under the
Loan Agreement, the execution and delivery of this Agreement by the Guarantor.

          NOW, THEREFORE, in order to induce the Lessor to enter into the Third
Amendment to Lease Agreement and the Lender under the Loan Agreement, the
Guarantor covenants and agrees with the Lessor as follows:

          1. Definitions. All terms not otherwise defined herein shall have the
meanings given such terms in the Lease.

          2. Guaranty. (a) The Guarantor hereby unconditionally and irrevocably
guarantees as primary obligor and not merely as surety to the Lessor the full
and faithful payment and performance of all the obligations of the Lessee under
the Lease (the

<PAGE>

"Guaranteed Liabilities"), including, without limitation, all Rent and the cost
of any materials and labor and other expenses required for the Aircraft to
satisfy the conditions set forth in Section 5 of the Lease.

          (b) In the event the Lessee shall fail to perform any of the
Guaranteed Liabilities, the Guarantor shall forthwith perform or shall cause
Lessee to perform such Guaranteed Liabilities within ten (10) Banking Days of
the receipt of notice from the Lessor.

          3. Nature of Obligations. The guaranties provided for in Section 2:
(a) are the primary obligations of Guarantor; (b) are absolute, unconditional,
present, and continuing guaranties of payment and performance and not just of
collection; (c) shall not be subject to any recoupment, offset, counterclaim or
defense based upon any claim that the Guarantor may have against the Lessor, the
Lessee, any Owner Participant or any of the Obligors (as hereinafter defined);
(d) are independent of and in no way conditioned upon:

               (i) any attempt by the Lessor to collect from or enforce its
               rights against the Lessee;

               (ii) any attempt by the Lessor to collect from, or the exercise
               of any rights and remedies against, any person other than the
               Lessee who may at any time now or hereafter be primarily or
               secondarily liable for any or all of the Guaranteed Liabilities,
               including, without limitation, any other maker, endorser, surety,
               or guarantor of all or a portion of the Guaranteed Liabilities or
               any person who is now or hereafter a party to any of the
               Operative Documents (all of the aforementioned being herein
               called collectively the "Obligors" and individually an
               "Obligor"); and

               (iii) any resort or recourse to or against any security or
               collateral now or hereafter pledged, assigned, or granted to the
               Lessor under the provisions of any instrument or agreement, or
               otherwise assigned or conveyed to it; and

(e) are independent of and in no way limited, modified, waived or terminated by:

                                       2

<PAGE>

               (i) any extension or indulgence in respect of the performance of
               any covenant, agreement, term or condition, under any Operative
               Document;

               (ii) any amendment or modification of or addition or supplement
               to or deletion of any of the terms of any Operative Document, or
               any assignment, mortgage, pledge or transfer of any thereof or of
               any interest therein;

               (iii) any compromise, waiver, release, consent, extension,
               indulgence or other action or inaction in respect of any of the
               terms of any Operative Document;

               (iv) any exercise or non-exercise by the Lessor of any right,
               power, privilege or remedy under or in respect of any Operative
               Document, or any waiver of any such right, power, privilege or
               remedy or of any default in respect of any Operative Document;

               (v) any bankruptcy, insolvency, reorganization, arrangement,
               adjustment, composition, dissolution, liquidation, or similar
               proceeding with respect to the Lessee or any of its properties;

               (vi) any limitation of the liability or obligations of the Lessee
               under the terms of any Operative Document which may now or
               hereafter be imposed by any statute, regulation or rule of law,
               or any invalidity or unenforceability, in whole or in part, of
               such Operative Document or any term thereof;

               (vii) any merger or consolidation of the Lessee, any corporate
               Owner Participant or the Guarantor into or with any other Person,
               or any sale, lease or transfer of any or all of the assets of the
               Lessee, any corporate Owner Participant or the Guarantor to any
               other person;

               (viii) any indebtedness of the Lessee to any other person;

               (ix) any claim, set-off, deduction or defense that the Lessee or
               may have against the Lessor whether hereunder or under any
               Operative Document or independent of or unrelated to the
               transactions contemplated by the Operative Documents;

                                       3

<PAGE>

               (x) any change in law;

               (xi) any sale, transfer or other disposition of any right, title
               to or interest in any Operative Document, unless in connection
               therewith a guaranty agreement from the third party, in form and
               substance reasonably satisfactory to the Lessor, is delivered in
               substitution for this Agreement;

               (xii) any change in the ownership of any shares of capital stock
               of Lessee;

               (xiii) to the extent as may be waived by applicable law, the
               benefit of all principles or provisions of law, statutory or
               otherwise, which may be in conflict with the terms hereof,
               including, without limitation, any law which provides that the
               obligation of a guarantor must neither be larger in amount nor in
               other respects more burdensome than that of the principal
               obligation or which reduces a guarantor's obligation in
               proportion to the principal obligation;

               (xiv) any disability or other defense of the Lessee with respect
               to any Guaranteed Liability under any Operative Document,
               including the effect of any statute of limitations that may bar
               the enforcement of any Guaranteed Liability under any Operative
               Document;

               (xv) any failure of the Lessor to file or enforce a claim in
               bankruptcy or other proceeding with respect to any entity;

               (xvi) any agreement or stipulation with respect to the provision
               of adequate protection in any bankruptcy proceeding; or

               (xvii) any other circumstance which might otherwise constitute a
               legal or equitable discharge, release or defense of a guarantor
               or surety, or which might otherwise limit recourse against the
               Guarantor (it being agreed that the obligations of the Guarantor
               hereunder shall not be discharged except by payment or
               performance as herein provided).

          4. Waiver. The Guarantor waives, to the extent permitted by applicable
laws: (a) notice of the execution and delivery of the Operative Documents; (b)
notice of

                                       4

<PAGE>

the Lessor's acceptance of and reliance on this Agreement or of the creation of
any of the Guaranteed Liabilities; (c) notice of any of the matters referred to
in Section 3 hereof; (d) all notice required by statute, rule of law, or
otherwise to preserve any rights against the Guarantor hereunder or under any of
the Operative Documents, including, without limitation, any demand, proof, or
notice of non-payment of any of the Guaranteed Liabilities by the Lessee or any
other Obligor and notice of any failure or default on the part of the Lessee or
any other Obligor to perform or comply with any term of any of the Operative
Documents to which the Lessee or any other Obligor is a party; (e) until such
time as the provisions of this Agreement are no longer in effect, any right to
subrogation, reimbursement, and indemnity against any property or other security
servicing at any time as collateral for any or all of the Guaranteed Liabilities
or under any of the Operative Documents; and (f) any other circumstance which
might otherwise constitute a legal or equitable discharge, release or defense of
a guarantor or surety, or which might otherwise limit recourse against the
Guarantor (it being understood that the obligations of the Guarantor hereunder
shall not be discharged except by payment or performance as herein provided). To
the extent that the Guarantor has any claim (arising by right of subrogation,
indemnification, or otherwise) against the Lessee or the Owner Participant,
arising on account of this Agreement or the obligations of the Guarantor
hereunder and any such claim would cause a payment or other benefit to the
Lessor to be deemed to be preferential under the applicable provisions of the
Federal Bankruptcy Code or other similar law, the Guarantor hereby waives and
releases the Lessee from each and every such claim.

          5. Subordination, Waiver of Rights of Subrogation. All rights that the
Guarantor may at any time have against the Lessee for the Guaranteed Liabilities
(including rights of subrogation, exoneration, reimbursement and contribution
and whether arising under applicable law or otherwise), and all obligations that
the Lessee may at any time have arising by virtue of the Guarantor's obligations
hereunder or any payment made pursuant hereto are expressly subordinated to the
prior performance in full of the Guaranteed Liabilities. The Guarantor agrees
not to enforce any of the rights, or attempt to obtain payment or performance of
any of the obligations subordinated pursuant to this Section 5 until the
Guaranteed Liabilities have been paid, observed and performed in full. If any
amount shall be paid to or recovered by the Guarantor (whether directly or by
way of set-off, recoupment or counterclaim) on account of any right or
obligation subordinated pursuant to this Section 5, such amount shall be held in
trust by the Guarantor for the benefit of the Lessor, not commingled with any of
the Guarantor's other funds and forthwith paid over to the Lessor, in the exact
form received, together with any necessary endorsements, to be applied and
credited against, or held as security for, the Guaranteed Liabilities and the
obligations of the Guarantor hereunder.

                                       5

<PAGE>

          6. Representations and Warranties and Covenants of the Guarantor. The
Guarantor makes the following representations, warranties and covenants:

          (a) The Guarantor is a corporation duly organized and validly existing
in good standing over the laws of the State of Oregon and has the corporate
power and authority to own or hold under lease its properties and to enter into
and perform its obligations under this Agreement. The Guarantor is duly
qualified to do business as a foreign corporation in each jurisdiction in which
failure to so qualify would have a material adverse effect on its financial
condition or on its ability to perform its obligations under this Agreement.

          (b) The execution and delivery by the Guarantor of this Agreement:

               (i) has been duly authorized by all necessary corporate action
               and does not require any stockholder approval or the approval or
               consent of or notice to any trustee or holders of any
               indebtedness or obligations of the Guarantor;

               (ii) does not conflict with or result in any violation of the
               certificate of incorporation or any other charter documents of
               the Guarantor or any agreement or instrument or any applicable
               law, by which the Guarantor or an Affiliate thereof or the
               properties or assets of any of them are bound; and

               (iii) does not require the authorization, consent or approval of,
               the giving of notice to, the registration with or the taking of
               any other action by or in respect of any governmental authority,
               agency or judicial body, or the taking of any other action under
               any Applicable Law except for those that have been or, on or
               before the date hereof will have been, duly made, given or
               accomplished.

          (c) This Guaranty constitutes a legal, valid and binding obligation of
the Guarantor enforceable against it in accordance with its terms except as such
enforcement may be limited by applicable bankruptcy, insolvency, reorganization,
moratorium and other laws affecting the rights of creditors generally and by
general principles of equity.

          (d) There are no pending or, to the knowledge of the Guarantor,
threatened actions or proceedings before any court or administrative agency or
arbitrator which could, if adversely determined, materially adversely affect the
financial condition

                                       6

<PAGE>

of the Guarantor or the ability of the Guarantor to perform its obligations
under this Agreement.

          (e) The Guarantor has filed or caused to be filed all material tax
returns which are required to be filed by it and has paid or caused to be paid
all taxes which has been shown to be due and payable by such returns or (except
to the extent being contested in good faith and for the payment of which
adequate reserves have been provided) tax assessments received by the Guarantor
to the extent that such taxes have become due and payable.

          (f) No documents prepared and furnished by the Guarantor to the Lessor
in connection with the transactions contemplated by this Agreement contain any
untrue statement of a material fact or omits a material fact necessary to make
the statements contained therein (in the case of statements referred to in
paragraph (e), as of the date made) not misleading.

          (g) The Guarantor is the parent corporation of Lessee and, by virtue
thereof, has a financial interest in the transactions contemplated by the
Operative Documents.

          (h) The execution and delivery by the Guarantor of this Agreement and
each Operative Document to which it is a party are not, and the performance by
the Guarantor of its obligations under each will not be, inconsistent with its
charter or bylaws, do not and will not contravene any law, governmental rule or
regulation, judgment or order applicable to it, and do not and will not
contravene the provisions of, or constitute a default or result in the creation
of any Lien upon any property of the Guarantor under any indenture, mortgage,
contract, agreement or other instrument to which it is a party or by which it is
bound or require the consent or approval of, the giving of notice to, the
registration with or the talking of any action in respect of or under any
federal, state or local governmental authority or agency, except such as has
been obtained, given or accomplished.

          (i) The Guarantor shall furnish to the Lessor from time to time, with
reasonable promptness, such other information regarding the business,
operations, affairs and financial condition of the Guarantor as the Lessor may
reasonably request;

          (j) The Guarantor shall permit, as may be reasonably requested, any
duly authorized representatives of the Lessor at all reasonable times: to
examine its books and records, to take memoranda and extracts therefrom and to
make copies thereof; to visit

                                       7

<PAGE>

and inspect its properties and operation; and, upon notice to the Guarantor, to
discuss the affairs, finances and accounts of the Lessee or the Owner
Participant with any of its trustees, directors, employees or accountants.

          (k) The Guarantor shall at all times maintain (i) its existence in
good standing under the laws of Oregon, and (ii) its right to transact business
in each jurisdiction in which the character of the properties owned or leased by
it or the business conducted by it makes such qualification necessary and the
failure to so qualify would preclude the Guarantor from enforcing its rights or
meeting its obligations under or with respect to any Operative Documents.

          (l) The Guarantor shall give prompt written notice to the Lessor, in
form and detail satisfactory to the Lessor, of any litigation or governmental
proceeding pending or, to its knowledge, threatened against the Guarantor which,
if adversely determined, could reasonably be expected to have a material adverse
effect on its financial condition or on its ability to perform its obligations
under this Agreement.

          (m) The Guarantor by entering into of this Agreement hereby covenants
and agrees that it will not at any time institute against the Lessee make a
voluntary filing with respect to itself or cause the Lessee to make a voluntary
filing with respect to itself in any bankruptcy, reorganization, arrangement,
insolvency or liquidation proceeding, or other proceeding under any United
Stated Federal or state bankruptcy or similar law.

          (n) The Guarantor shall furnish to the Lender:

                    (i) within 90 days of the first, second and third quarterly
fiscal periods in each fiscal year of the Guarantor, a copy of:

                         (A) a balance sheet of the Guarantor as at the end of
          such quarter setting forth comparative form the figures for the end of
          the corresponding period of the preceding fiscal year;

                         (B) statements of income and retained earnings of the
          Guarantor for such quarterly period, setting forth in comparative form
          the figures for the corresponding period of the preceding year;

                    (ii) within 120 days after the end of each fiscal year of
the Guarantor, a copy of:

                                       8

<PAGE>

                         (A) a consolidated balance sheet of the Guarantor as at
          the end of such year; and

                         (B) consolidated statements of income and retained
          earnings and of cash flow of the Guarantor for such year setting forth
          in each case in comparative form the figures for the previous fiscal
          year, together with a certificate of the chief financial officer of
          the Guarantor certifying that such statements are true and accurate.

          7. Enforcement Expenses. The Guarantor shall indemnify and hold
harmless the Lessor against any loss, liability, or reasonable out-of-pocket
expenses, including reasonable attorneys' fees and disbursements and any other
fees and disbursements, that may result from any failure of the Guarantor to
pay or perform any of the Guaranteed Liabilities when and as due and payable.

          8. Delay and Waiver by the Lessor. No delay by the Lessor in the
exercise of, or failure to exercise, any right, remedy, or power accruing upon
any default or failure of the Guarantor in the performance of any obligation
under this Agreement shall impair any such right, remedy, or power or shall be
construed to be a waiver thereof, but any such right, remedy, or power may be
exercised from time to time and as often as may be deemed by the Lessor
expedient. In order to entitle the Lessor to exercise any right, remedy or power
reserved to it in this Agreement, it shall not be necessary to give any notice
to the Guarantor. If the Guarantor shall default in the performance of any
obligation under this Agreement, and such default should thereafter be waived by
the Lessor, such waiver shall be limited to the particular default so waived. No
waiver, amendment, release, or modification of this agreement shall be
established by conduct, custom, or course of dealing. All obligations of the
Guarantor and the rights of the Lessor shall be in additional to, and not in
limitation of, those provided by Applicable Law.

          9. Consent to Assignment. Guarantor acknowledges that Borrower, as
Lessor under the Lease has assigned its rights under the Lease and this Guaranty
to Lender under the First Priority Chattel Mortgage and Security Agreement,
dated as of the date hereof, and that, pursuant to Section 22 of the Lease,
Lessee has consented thereto. Guarantor hereby consents to such assignment and
agrees that, upon the occurrence of an Event of Default under and as defined in
the Loan Agreement, Guarantor shall perform all of its obligations hereunder
for, and at the direction of, the Lender, as assignee of Lessor.

                                       9

<PAGE>

          10. Notices and Communications. All notices and other communications
hereunder shall be given in writing (along with all required copies) as provided
in the Lease, or if to the Guarantor, at 3850 Three Mile Lane, McMinnville,
Oregon 97128.

          11. Governing Law: Consent to Jurisdiction. THIS AGREEMENT SHALL BE
DEEMED TO HAVE BEEN MADE IN AND SHALL BE GOVERNED AND INTERPRETED BY THE LAWS OF
THE STATE OF ARIZONA WITH RESPECT TO AGREEMENTS MADE BY RESIDENTS OF THE STATE
OF NEW YORK AND TO BE WHOLLY PERFORMED WITHIN SAID STATE AND THE RIGHTS OF THE
LESSOR HEREUNDER SHALL BE DETERMINED IN ACCORDANCE WITH SUCH LAWS, EXCEPT TO THE
EXTENT THAT THE LAW OF SOME OTHER JURISDICTION MAY BE MANDATORILY APPLICABLE TO
PROCEEDINGS TAKEN FOR THE ENFORCEMENT OF THE RIGHTS OF THE LESSOR HEREUNDER;
PROVIDED, HOWEVER, THAT ANY REMEDIES HEREIN PROVIDED WHICH SHALL BE VALID UNDER
THE LAWS OF THE JURISDICTION WHERE PROCEEDINGS FOR THE ENFORCEMENT HEREOF SHALL
BE TAKEN SHALL NOT BE AFFECTED BY ANY INVALIDITY THEREOF UNDER THE LAWS OF THE
STATE OF. If any provision of this Agreement shall be held invalid or
inapplicable to any circumstance or in any jurisdiction, such invalidity or
inapplicability shall not affect any other provision hereof or any other
agreement between the parties hereto which can be given effect without regard to
the invalid provision, nor to the same provision to the extent valid or
enforceable in any other applicable jurisdiction, nor shall any such
inapplicability to any circumstance affect the applicability of such terms to
any other or different or subsequent circumstance, all of such terms, conditions
or provisions are deemed severable. The Guarantor and the Lessor each hereby
agrees that all actions or proceedings initiated by Guarantor and arising
directly or indirectly out of this Agreement may be litigated in the Superior
Court of Arizona, Maricopa County or the United States District Court for the
District of Arizona and any action or proceeding initiated by Lessor and arising
directly or indirectly out of this Agreement may be litigated in either such
jurisdiction or in any other jurisdiction in which the Aircraft, the Guarantor
or any of its assets may be located, at Lessor's discretion. Each party hereby
expressly submits and consents in advance to such jurisdiction and venue in any
action or proceeding commenced by either party in any of such courts, and hereby
waives personal service of the summons and complaint, or other process of papers
issued therein, and agrees that such service of the summons and complaint may be
made by registered mail, return receipt requested, addressed to either party, at
the respective addresses referred to Section 10 hereof. Each party waives any
claim that Phoenix, Arizona the District of Arizona or such other jurisdiction
is an inconvenient forum or an improper forum based on lack of

                                       10

<PAGE>

venue. Should either party, after being so served, fail to appear or answer any
summons, complaint, process or paper so served within 30 days after the mailing
thereof, each party acknowledges that as a result thereof, an order and/or
judgment may be entered by either party against the other as demanded or pleaded
for in such summons, complaint, process or papers. The choice of forum set forth
herein shall not be deemed to preclude the enforcement by either party of any
judgment in any other appropriate jurisdiction.

          12. Waiver of Trial by Jury. GUARANTOR HEREBY WAIVES TRIAL BY JURY IN
ANY JUDICIAL PROCEEDING BROUGHT BY IT OR BY THE LESSOR INVOLVING DIRECTLY OR
INDIRECTLY, ANY MATTER IN ANY WAY ARISING OUT OF, RELATING TO, OR CONNECTED WITH
THE OPERATIVE DOCUMENTS.

          13. No Withholding; Gross Up.

               (a) All payments hereunder shall be made without deduction by
reason of any defense, set-off or counterclaim of any kind, nature or
description whatever.

               (b) All payments hereunder shall be made free and clear of, and
without deduction for, any taxes, levies, imposts, charges, duties, fees or
withholding of any nature whatsoever now or hereafter imposed by or within any
governmental authority or pursuant to any governmental rule or regulation or any
administrative subdivision or taxing authority thereof or therein, respectively,
unless the obligor is compelled by law to deduct or withhold such taxes, levies,
imposts, charges, duties or fees, in which event the obligor shall pay to the
Lessor such additional amounts as shall result in the effective receipt by the
Lessor of the gross amount of all sums due the Lessor under the Operative
Documents had no such deduction or withholding been made.

          14. Successors and Assigns. All covenants and agreements of the
Guarantor set forth in this Agreement shall bind the Guarantor and its
successors and assigns and shall inure to the benefit of, and be enforceable by,
the Lessor and its successors and assigns.

          15. Miscellaneous. Neither this Agreement nor any them hereof may be
terminated, amended, supplemented, waived, released, or modified orally, but
only by an instrument in writing signed by the party against which the
enforcement of the termination, amendment, supplement, waiver, release, or
modification is sought. Whenever used herein, the singular feminine, or neuter
gender shall include all genders.

                                       11

<PAGE>

Whenever used herein, the word "person" or "persons" shall mean and include a
corporation, an association, a partnership, an organization, a business, an
individual, a governmental or political subdivision or agency thereof, or an
estate or trust. If any term of this Agreement or any obligation hereunder shall
be held to be invalid, illegal, or unenforceable, the remainder of this
Agreement and any other application of such term shall not be affected thereby.
The paragraph and section headings of this Agreement have been inserted for
convenience only and shall not modify, define, limit, or expand the express
provisions hereof. This Agreement may be executed in duplicate originals or in
several counterparts, each of which shall be deemed an original but all of which
together shall constitute one instrument, and it shall not be necessary in
making proof hereof to produce or account for more than one such duplicate
original or counterpart.

                                       12

<PAGE>

          IN WITNESS WHEREOF, the undersigned have caused this Guaranty to be
executed and delivered by their duly authorized officers as of the day and year
first written above.

                                        EVERGREEN INTERNATIONAL AVIATION, INC.

                                        By: /s/ Carolyn S. Fox
                                            ------------------------------------
                                        Name: Carolyn S. Fox
                                        Title: Treasurer

                                        WILMINGTON TRUST COMPANY, not in its
                                        individual capacity but solely as
                                        Owner Trustee

                                        By: /s/ David A. Vanaskey, Jr.
                                            ------------------------------------
                                        Name: David A. Vanaskey, Jr.
                                        Title: Senior Financial Services Officer

                                       13

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