Document:

Executed in 6 Parts
                                                             Counterpart No. ( )

                              NATIONAL EQUITY TRUST

                           S&P 500 STRATEGY TRUST SERIES 14

                            REFERENCE TRUST AGREEMENT

     This Reference Trust Agreement dated     , 2000 among Prudential Securities
Incorporated, as Depositor and The Chase Manhattan Bank, as Trustee, sets forth
certain provisions in full and incorporates other provisions by reference to the
document entitled "National Equity Trust Low Five Portfolio Series, Trust
Indenture and Agreement" (the "Basic Agreement") dated April 25, 1995. 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
except that the Basic Agreement is hereby amended in the following manner:

     A.   Article I, entitled "Definitions", paragraph 22, shall be amended as
          follows:

               "Trustee shall mean the Chase Manhattan Bank, or any successor
               trustee appointed as hereinafter provided."

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                                       -2-

     B.   Article II, entitled "Deposit of Securities; Acceptance of Trust",
          shall be amended as follows:

               The second sentence of Section 2.03 Issue of Units shall be
               amended by deleting the words "on any day on which the Depositor
               is the only Unit Holder".

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

          (i)  Section 3.01 Initial Costs shall be amended to substitute the
               following language:

               Section 3.01. Initial Cost The costs of organizing the Trust and
               sale of the Trust Units shall, to the extent of the expenses
               reimbursable to the Depositor provided below, be borne by the
               Unit Holders, provided, however, that, to the extent all of such
               costs are not borne by Unit Holders, the amount of such costs not
               borne by Unit Holders shall be borne by the Depositor and,
               provided further, however, that the liability on the part of the
               Depositor under this section shall not include any fees or other
               expenses incurred in connection with the administration of the
               Trust subsequent to the deposit referred to in Section 2.01. Upon
               notification from the Depositor that the primary offering period
               is concluded, the Trustee shall withdraw from the Account or
               Accounts specified in the Prospectus or, if no Account is therein
               specified, from the Principal Account, and pay to the Depositor
               the Depositor's reimbursable expenses of organizing the Trust and
               sale of the Trust Units in an amount certified to the Trustee by
               the Depositor. If the balance of the Principal Account is
               insufficient to make such withdrawal, the Trustee shall, as
               directed by the Depositor, sell Securities identified by the
               Depositor, or distribute to the Depositor Securities having a
               value, as determined under Section 4.01 as of the date of
               distribution, sufficient for such reimbursement. The
               reimbursement provided for in this section shall be for the
               account of the Unitholders of record at the conclusion of the
               primary offering period and shall not be reflected in the
               computation of the Unit Value prior thereto. As used herein, the

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                                -3-

               Depositor's reimbursable expenses of organizing the Trust and
               sale of the Trust Units shall include the cost of the initial
               preparation and typesetting of the registration statement,
               prospectuses (including preliminary prospectuses), the indenture,
               and other documents relating to the Trust, SEC and state blue sky
               registration fees, the cost of the initial valuation of the
               portfolio and audit of the Trust, the initial fees and expenses
               of the Trustee, and legal and other out-of-pocket expenses
               related thereto, but not including the expenses incurred in the
               printing of preliminary prospectuses and prospectuses, expenses
               incurred in the preparation and printing of brochures and other
               advertising materials and any other selling expenses. Any cash
               which the Depositor has identified as to be used for
               reimbursement of expenses pursuant to this Section shall be
               reserved by the Trustee for such purpose and shall not be subject
               to distribution or, unless the Depositor otherwise directs, used
               for payment of redemptions in excess of the per-Unit amount
               allocable to Units tendered for redemption. As directed by the
               Depositor, the Trustee will advance funds to the Trust in an
               amount necessary to reimburse the Depositor pursuant to this
               Section and shall recover such advance from the sale or sales of
               Securities at such time as the Depositor shall direct, but in no
               event later than the termination of the Trust. Repayment of any
               such advance shall be secured by a lien on the assets of the
               Trust prior to the interest of the Unit Holders as provided in
               Section 6.04.

          (ii) The third paragraph of Section 3.05 Distribution shall be amended
               to add the following sentence at the end thereof:

               "The Trustee shall make a special distribution of the cash
               balance in the Income and Principal accounts available for such
               distribution to Unit Holders of record on such dates as the
               Depositor shall direct, provided however, that no such
               distribution shall be made if the assets of the Trust subsequent
               to such distribution would not exceed any Deferred Sales Charge
               payable and other trust expenses."

          (iii) The second to the last paragraph of Section 3.08 Sale of
                Securities shall be amended to replace the word "equal" with the
                following phrase: "be sufficient to pay."

          (iv)  Section 3.14 Deffered 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."

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                                -4-

     D.   Reference to United States Trust Company of New York in its capacity
          as Trustee is replaced by the Chase Manhattan Bank throughout the
          Basic Agreement.

     E.   Section 6.05 shall be amended to delete the clause "if the Depositor
          shall determine in good faith that there has occurred either (1)
          a material deterioration in the creditworthiness of the Trustee or
          (2) one or more negligent acts on the part of the Trustee having a
          materially adverse effect, either singly or in the aggregate, on the
          Trust or on one or more Trusts, such that the replacement of the
          Trustee is in the best interest of the Unit Holders" and insert in
          place thereof "upon the determination of the Depositor to remove the
          Trustee for any reason, either with or without cause, including but
          not limited to a determination by the Depositor that the Trustee has
          materially failed to perform its duties under this Indenture and the
          interest of Unit Holders has been substantially impaired as a result".

                                       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, S&P 500 Strategy Trust Series 14.

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

                  C. The contracts for the purchase of common stock 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
                     as of the date hereof.

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

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

                  H.    The terms "Computation Day" and "Record
            Date" shall mean        2000,        2000,        2001, and
                   2001.

                  I.    The term "Distribution Date" shall mean
                   2000,        2000,        2001, and        2001.

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

                  K. The Trustee's Annual Fee shall be $ (per 1,000 Units) for
            100,000,000 and above units outstanding; $0.80 (per 1,000 Units) for
            50,000,000 - 99,999,999 units outstanding; $0.86 (per 1,000 Units)
            for 49,999,999 and below units outstanding. 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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                                       -5-

                  L.    The Depositor's Portfolio supervisory
            service fee shall be $0.25 per 1,000 Units.

                  [Signatures and acknowledgments on separate pages]<PAGE>

                                                                    EXHIBIT 10.1

Arthur C. Kellar                             Desarollo Integrado, S.A. de C.V.
106 Ebbtide Drive                            Blvd. Diaz Ordaz #200
North Palm Beach, Florida  33408             Col. Santa Maria
                                             Monterrey, N.L.
                                             Mexico
                                             CP 64650

                                August 3, 2000

Precision Auto Care, Inc.
748 Miller Drive, S.E.
Leesburg, Virginia  20175
Attn;  Woodley A. Allen
       Chairman of the Board of Directors

RE:    $11,250,000 Credit Facilities to Precision Auto Care, Inc.

Dear Woody:

     You have requested that Arthur Kellar and Desarrollo Integrado, S.A. de
C.V., each participating at 50% through an entity created, owned and controlled
by them (the "Lender"), consider a financing arrangement for Precision Auto
Care, Inc. ("PAC") to refinance existing debt and provide for the Borrower's
ongoing working capital needs. In connection therewith, and subject to and upon
the terms and conditions hereinafter set forth, we are pleased to inform you of
our commitment to make available to the Borrower to a total credit facility of
$11,250,000 ("Credit Facility") (it being understood that Arthur Kellar and
Desarrollo Integrado S.A. de C.V. shall each be responsible for making
$5,625,000 of the Credit Facility available through the Lender).

     1.   Borrower:  Precision Auto Care, Inc., its US subsidiaries and its
          --------
          foreign subsidiaries, all jointly and severally, except to the extent
          that the liability of the Borrower's Mexican subsidiaries would create
          a deemed dividend to the Borrower for U.S. tax purposes, in which case
          their liability will be appropriately limited.

     2.   Revolving Credit Facility:  The Lender agrees to provide to the
          -------------------------
          Borrower a three-year revolving credit facility with a minimum
          capacity of United States Eleven Million Two Hundred and Fifty
          Thousand Dollars (U.S. $11,250,000) at any one time outstanding (it
          being understood that Arthur Kellar and Desarrollo Integrado S.A. de
          C.V. shall each be responsible for making $5,625,000 of the Credit
          Facility available through the Lender).

     3.   Use of Proceeds:  The facility will be available to purchase the
          ---------------
          promissory note and related financing documents pursuant to which the
          existing working capital and acquisition lines of credit were made
          available to the Borrower by First Union National Bank ("First
          Union"), which have an aggregate outstanding principal balance of
          approximately $7,300,000 as of the date of this letter, plus accrued
          interest. Following
<PAGE>

Woodley A. Allen
August 3, 2000
Page 2

          the refinancing, the entire amount of the Lender's Revolving Credit
          Facility will be available to finance the Borrower's working capital
          needs. Prior to refinancing the Borrower's outstanding lines of credit
          with First Union, the Lender may make available to the Borrower up to
          $2,500,000 to pay the Borrower's payroll, payroll taxes, debt service
          obligations and other immediate needs (the "Bridge Loan").

     4.   Structure:  The Lender's Revolving Credit Facility will be structured
          ---------
          as an amendment and restatement of the First Union financing. Revised
          terms will include: (a) an increase in the amount available under the
          working capital line of credit; (b) the elimination of the acquisition
          line of credit and the principal amortization requirements with
          respect thereto, such that the entire principal balance of the
          Lender's Revolving Credit Facility will be due and payable at
          maturity, subject to the Mandatory Prepayment Terms described below;
          (c) an increase in the applicable per annum interest rate from LIBOR
                                            --- -----
          plus 4.75% to an established fixed rate of 12% per annum; (d) the
                                                         --- -----
          assignment of all collateral securing the First Union financing,
          including a lien on all unencumbered real property owned by the
          Borrower, a pledge of stock in PAC's subsidiaries and a security
          interest in the Borrower's Accounts, Inventory, Chattel Paper,
          Documents, General Intangibles, Instruments, Equipment, Securities and
          Records pertaining to all of the above (as such terms are defined in
          the Uniform Commercial Code); and (e) the elimination of all financial
          covenants and appropriate modifications to certain negative covenants
          as necessary or appropriate to reflect the Lender's status as a non-
          institutional lender.

          In the event a Bridge Loan is extended by the Lender prior to the time
          the First Union financing has been amended and restated, the
          obligation of the Borrower to repay the principal amount of the Bridge
          Loan, plus interest thereon at 12% per annum, shall be evidenced by a
                                             --- -----
          Subordinated Debenture or Demand Note containing the subordination
          language previously approved by First Union.  Such note will be
          cancelled at such time as all amounts due thereunder are included in
          the balance due and outstanding under the Lender's Revolving Credit
          Facility.

          In no event shall amounts outstanding under the Lender's Revolving
          Credit Facility and the Bridge Loan exceed the Lender's total
          commitment of U.S. $11,250,000.

     5.   Maturity:  The Lender's Revolving Credit Facility shall mature on
          --------
          September 1, 2003.

     6.   Optional Prepayment:  The Borrower may, at its option, prepay the
          -------------------
          Lender's Revolving Credit Facility in whole or in part, at any time
          without premium or penalty.

     7.   Mandatory Prepayment:  The Borrower will be required to prepay the
          --------------------
          Lender's Revolving Credit Facility from the net cash proceeds
          generated by any sale of the Company's businesses and assets unless
          the Lender waives in writing the right to receive proceeds.
<PAGE>

Woodley A. Allen
August 3, 2000
Page 3

     8.   Financing Fee:  At the time of closing on the Lender's Revolving
          -------------
          Credit Facility there shall be a financing fee payable by the Borrower
          to the Lender in the form of warrants to purchase 2,000,000 shares of
          PAC's common stock at a price per share equal to 125% of the closing
          price for the PAC common stock reported at the close of business on
          the day prior to the date on which this letter is executed and
          delivered by the parties. The Lender understands that the issuance of
          warrants may be subject to the approval of PAC's stockholders if PAC
          determines it is advisable to seek such approval in order to comply
          with applicable NASDAQ listing requirements. IF PAC determines to seek
          their approval this will be requested as soon as practicable following
          closing on the Lender's Revolving Credit Facility. In the event that
          shareholder approval is sought and not obtained, the Lender and the
          Borrower agree to negotiate some form of mutually acceptable
          alternative compensation of equivalent value.

     9.   Conditions Precedent:  The Lender's obligation to provide the
          --------------------
          Revolving Credit Facility shall be subject to the fulfillment of the
          following conditions:

          A.   The execution and delivery, in form and substance acceptable to
               the Lender and its counsel, of the documents necessary or
               appropriate to accomplish the foregoing transactions.

          B.   The execution by Louis M. Brown of an Employment Agreement with
               PAC pursuant to which he will agree to (i) serve as PAC's
               president and chief executive officer beginning August ___, 2000,
               and (ii) purchase up to 1,700,000 shares of PAC's common stock
               for U.S. $750,000.

     10.  Miscellaneous:

          A.   This commitment may not be assigned or in any way transferred by
               the Borrower without the prior written approval of the Lender.

          B.   This commitment shall be governed by and construed under the laws
               of the Commonwealth of Virginia. The Revolving Credit Facility
               shall be governed by and construed under the laws of the
               Commonwealth of Virginia.

          C.   This letter supersedes in all respects any other written and oral
               communications prior to the date hereof regarding the financing
               transaction contemplated by this letter.

          D.   If the foregoing is satisfactory, kindly indicate your acceptance
               by signing the enclosed copy of this letter and returning one
               fully executed letter to the Lender, by the close of business on
               the fifth business day following the date of its issuance. This
               commitment shall expire on October 5, 2000 unless the Lender's
               Revolving Credit Facility has closed before that date.

                                    Yours truly,
<PAGE>

Woodley A. Allen
August 3, 2000
Page 4

                                    ____________________________
                                    Arthur C. Kellar

                                    Desarrollo Integrado, S.A. de C.V.

                                    By:_________________________
                                       Name:  Mauricio Zambrano
                                       Title: Managing Director

The foregoing commitment is hereby accepted by the Borrower this ___ day of
August, 2000.

Precision Auto Care, Inc.

By:____________________________________
   Name:  Woodley A. Allen
   Title: Chairman of the Board of Directors

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