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                                                            Executed in 6 Parts
                                                           Counterpart No. (   )


                              NATIONAL EQUITY TRUST

                           OTC GROWTH TRUST SERIES 16

                            REFERENCE TRUST AGREEMENT


     This Reference Trust Agreement dated September 20, 2001 among Prudential
Investment Management Services LLC, as Depositor, Prudential Securities
Incorporated, as Portfolio Supervisor, 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.

A.   Article I, entitled "Definitions," shall be amended as follows:

(i)  Section  1.01-Definitions  shall be amended to add the following definition
     at the end thereof:

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     "Portfolio Supervisor" of the Trust shall have the meaning assigned to it
in Part II of the Reference Trust Agreement.

B.   Article  III,  entitled  "Administration  of  Trust,"  shall be  amended as
     follows:

(i)  The third paragraph of Section 3.05-Distribution shall be amended by
     deleting any reference to Depositor and replacing it with Portfolio
     Supervisor.

(ii) Section 3.14-Deferred Sales Charge shall be amended to add the following
     sentences at the end thereof:

"References to Deferred Sales Charge in this Trust Indenture and Agreement shall
include any Creation and Development Fee indicated in the prospectus for a
Trust. The Creation and Development Fee shall be payable on each date so
designated and in an amount determined as specified in the prospectus for a
Trust."

C.   Article VIII, entitled "Depositor," shall be amended as follows:

(i)  Section 8.07-Compensation shall be amended by deleting any reference to
     Depositor and replacing it with Portfolio Supervisor.


                                    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 16.

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.

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D.   The term "Depositor" shall mean Prudential  Investment  Management Services
     LLC.

E.   The  term  "Portfolio   Supervisor"   shall  mean   Prudential   Securities
     Incorporated.

F.   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.

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

H.   The term "First Settlement Date" shall mean September 26, 2001.

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

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

K.   The term "Termination Date" shall mean October 29, 2002.

L.   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.

M.   The Portfolio Supervisor'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
16 is hereby incorporated by reference herein as Schedule A hereto.