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                                                        Executed in 6 Parts
                                                        Counterpart No. (   )


                              NATIONAL EQUITY TRUST


                            OTC GROWTH TRUST SERIES 7


                            REFERENCE TRUST AGREEMENT


     This Reference Trust Agreement dated May 3, 2000 among Prudential
Securities Incorporated, as Depositor and The Bank of New York, as Trustee, sets
forth certain provisions in full and incorporates other provisions by reference
to the document entitled "National Equity Trust, Trust Indenture and Agreement"
(the "Basic Agreement") dated February 2, 2000. Such provisions as are set forth
in full herein and such provisions as are incorporated by reference constitute a
single instrument (the "Indenture").

                                WITNESSETH THAT:


     In consideration of the premises and of the mutual agreements herein
contained, the Depositor and the Trustee agree as follows:

                                     Part I.


                     STANDARD TERMS AND CONDITIONS OF TRUST


     Subject to the provisions of Part II hereof, all the provisions contained
in the Basic Agreement are herein incorporated by reference in their entirety
and shall be deemed to be a part of this instrument as fully and to the same
extent as though said provisions had been set forth in full in this instrument.

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                                     Part II.


                      SPECIAL TERMS AND CONDITIONS OF TRUST


     The following special terms and conditions are hereby agreed to:


     A. The Trust is denominated National Equity Trust, OTC Growth Trust Series
7.

     B. The Units of the Trust shall be subject to a deferred sales charge.

     C. The publicly traded stocks listed in Schedule A hereto are those which,
subject to the terms of this Indenture, have been or are to be deposited in
Trust under this Indenture as of the date hereof.

     D. The term "Depositor" shall mean Prudential Securities Incorporated.

     E. The aggregate number of Units referred to in Sections 2.03 and 9.01 of
the Basic Agreement is 125,000 as of the date hereof.

     F. A Unit of the Trust is hereby declared initially equal to 1/125,000th
of the Trust.

     G. The term "First Settlement Date" shall mean May 9, 2000.

     H. The terms "Computation Day" and "Record Date" shall be on such dates as
the Sponsor shall direct.

     I. The term "Distribution Date" shall be on such dates as the Sponsor shall
direct.

     J. The term "Termination Date" shall mean June 12, 2001.

     K. The Trustee's Annual Fee shall be $.90 (per 1,000 Units) for
49,999,999 and below units outstanding $.84 (per 1,000 Units) on the next
50,000,000 Units, $.78 (per 1,000 Units) on the next 100,000,000 Units, and
$.66 (per 1,000 Units) on Units in excess of 200,000,000 Units. In calculating
the Trustee's annual fee, the fee applicable to the number of units outstanding
shall apply to all units outstanding.

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     L. The Depositor's Portfolio supervisory service fee shall be $.25 per
1,000 Units.

                  [Signatures and acknowledgments on separate pages]

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The Schedule of Portfolio  Securities  in Part A of the  prospectus  included in
this Registration Statement for National Equity Trust, OTC Growth Trust Series 7
is hereby incorporated by reference herein as Schedule A hereto.