ADMINISTRATIVE SERVICES CONTRACT

                  CONNECTICUT DAILY TAX FREE INCOME FUND, INC.
                                   the "Fund"

                               New York, New York

                                                                          , 1995


Reich & Tang Asset Management L.P.
600 Fifth Avenue
New York, New York  10022

Gentlemen:

     We herewith confirm our agreement with you as follows:

     1. We propose to engage in the business of investing  and  reinvesting  our
assets  in  securities  of the type,  and in  accordance  with the  limitations,
specified in our Articles of Incorporation,  By-Laws and Registration  Statement
filed with the Securities and Exchange  Commission under the Investment  Company
Act of 1940 (the  "1940  Act") and the  Securities  Act of 1933,  including  the
Prospectus  forming a part thereof (the "Registration  Statement"),  all as from
time to time in effect,  and in such  manner and to such extent as may from time
to time be  authorized  by our  Board of  Directors.  We  enclose  copies of the
documents  listed above and will furnish you such  amendments  thereto as may be
made from time to time.

     2. a. We hereby employ you as our administrator  (the  "Administrator")  to
provide all management and administrative  services reasonably necessary for our
operation,  other  than  those  services  you  provide  to us  pursuant  to  the
Investment Management Contract. The services to be provided by you shall include
but not be  limited  to those  enumerated  on  Exhibit A hereto.  The  personnel
providing  these services may be your employees or employees of your  affiliates
or of other  organizations.  You shall make periodic reports to the Fund's Board
of Directors in the performance of your obligations under this Agreement and the
execution  of your duties  hereunder  is subject to the  general  control of the
Board of Directors.

     b. It is  understood  that you will from time to time  employ,  subcontract
with or  otherwise  associate  with  yourself,  entirely at your  expense,  such
persons as you believe to be particularly  fitted to assist you in the execution
of your duties  hereunder.  While this  agreement  is in effect,  you or
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persons  affiliated  with you, other than us ("your  affiliates"),  will provide
persons  satisfactory  to our Board of  Directors  to be  elected  or  appointed
officers or employees of the Fund.  These shall be a president,  a secretary,  a
treasurer,  and such  additional  officers and  employees as may  reasonably  be
necessary for the conduct of our business.

     c.  You or  your  affiliates  will  also  provide  persons,  who may be our
officers,  to (i) supervise the performance of bookkeeping and related  services
and calculation of net asset value and yield by our  bookkeeping  agent and (ii)
prepare  reports  to and the  filings  with  regulatory  authorities,  and (iii)
perform such clerical,  other office and  shareholder  services for us as we may
from time to time  request  of you.  Such  personnel  may be your  employees  or
employees of your  affiliates  or of other  organizations.  Notwithstanding  the
preceding,  you shall not be  required to perform any  accounting  services  not
expressly provided for herein.

     d. You or your  affiliates  will also  furnish us such  administrative  and
management  supervision  and  assistance  and such office  facilities as you may
believe  appropriate or as we may reasonably request subject to the requirements
of any regulatory  authority to which you may be subject. You or your affiliates
will also pay the expenses of promoting  the sale of our shares  (other than the
costs of preparing,  printing and filing our  Registration  Statement,  printing
copies of the prospectus  contained  therein and complying with other applicable
regulatory  requirements),  except to the extent that we are  permitted  to bear
such expenses under a plan adopted  pursuant to Rule 12b-1 under the 1940 Act or
a similar rule.

     3. We will  expect of you,  and you will give us the  benefit of, your best
judgment  and  efforts in  rendering  these  services  to us, and we agree as an
inducement  to your  undertaking  these  services  that you  will not be  liable
hereunder  for any  mistake of judgment or for any other  cause,  provided  that
nothing  herein shall protect you against any liability to us or to our security
holders by reason of willful  misfeasance,  bad faith or gross negligence in the
performance of your duties hereunder, or by reason of your reckless disregard of
your obligations and duties hereunder.

     4. In  consideration  of the foregoing we will pay you a fee of .21% of the
Fund's average daily net assets.  Your fee will be accrued by us daily, and will
be  payable  on the last  day of each  calendar  month  for  services  performed
hereunder  during  that  month  or on such  other  schedule  as we may  agree in
writing.  You may use any portion of this fee for distribution of our shares, or
for making servicing  payments to  organizations  whose 
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customers or clients are our  shareholders.  You may waive your right to any fee
to which you are entitled hereunder,  provided such waiver is delivered to us in
writing.

     5. This  Agreement  will  become  effective  on the date  hereof  and shall
continue in effect until and  thereafter  for  successive  twelve-month  periods
(computed from each ), provided that such continuation is specifically  approved
at least  annually by our Board of  Directors  and by a majority of those of our
directors  who are  neither  party to this  Agreement  nor,  other than by their
service as directors of the corporation,  interested  persons, as defined in the
1940 Act, of any such person who is party to this Agreement.  This Agreement may
be  terminated  at any time,  without the payment of any  penalty,  by vote of a
majority of our outstanding voting securities, as defined in the 1940 Act, or by
a vote of a majority of our entire  Board of  Directors  on sixty days'  written
notice to you, or by you on sixty days' written notice to us.

     6. This Agreement may not be transferred,  assigned,  sold or in any manner
hypothecated or pledged by you and this Agreement shall terminate  automatically
in the event of any such transfer,  assignment, sale, hypothecation or pledge by
you. The terms  "transfer",  "assignment"  and "sale" as used in this  paragraph
shall have the  meanings  ascribed  thereto by governing  law and in  applicable
rules or regulations of the Securities and Exchange Commission.

     7. Except to the extent  necessary to perform your  obligations  hereunder,
nothing herein shall be deemed to limit or restrict your right,  or the right of
any of your officers, directors or employees who may also be a director, officer
or employee of ours, or of a person  affiliated  with us, as defined in the Act,
to  engage  in any  other  business  or to  devote  time  and  attention  to the
management  or other  aspects  of any other  business,  whether  of a similar or
dissimilar  nature, or to render services of any kind to any other  corporation,
firm, individual or association.
<PAGE>

     8. This  Agreement  shall be construed in  accordance  with the laws of the
State of New York and the applicable provisions of the 1940 Act.

     If the foregoing is in accordance with your understanding,  will you kindly
so indicate by signing and returning to us the enclosed copy hereof.

                                            Very truly yours,

                                            CONNECTICUT DAILY TAX FREE INCOME
                                                  FUND, INC.

                                       By:


ACCEPTED:           , 1995

REICH & TANG ASSET MANAGEMENT L.P.

By:  REICH & TANG ASSET MANAGEMENT, INC.,
           General Partner


         By:

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                                    Exhibit A



                     Administration Services To Be Performed
                      By Reich & Tang Asset Management L.P.



Administration Services

1.   In  conjunction  with Fund  counsel,  prepare  and file all  Post-Effective
     Amendments to the Registration Statement, all state and federal tax returns
     and all other required regulatory filings.

2.   In  conjunction  with Fund counsel,  prepare and file all Blue Sky filings,
     reports and renewals.

3.   Coordinate,  but not pay for,  required  Fidelity  Bond and  Directors  and
     Officers  Insurance (if any) and monitor their  compliance  with Investment
     Company Act.

4.   Coordinate the preparation and distribution of all materials for Directors,
     including the agenda for meetings and all exhibits thereto,  and actual and
     projected quarterly summaries.

5.   Coordinate the activities of the Fund's Manager,  Custodian,  Legal Counsel
     and Independent Accountants.

6.   Prepare  and file all  periodic  reports to  shareholders  and  proxies and
     provide support for shareholder meetings.

7.   Monitor daily and periodic  compliance with respect to all requirements and
     restrictions of the Investment  Company Act, the Internal  Revenue Code and
     the Prospectus.

8.   Monitor daily the Fund's  bookkeeping  services agent's  calculation of all
     income and  expense  accruals,  sales and  redemptions  of  capital  shares
     outstanding.

9.   Evaluate  expenses,  project  future  expenses,  and  process  payments  of
     expenses.

10.  Monitor and evaluate  performance  of  accounting  and  accounting  related
     services by Fund's  bookkeeping  services  agent.  Nothing  herein shall be
     construed to require you to perform any  accounting  services not expressly
     provided for in this Agreement.