The annual meeting of shareholders will be held on Tuesday, April 7, 2015, at 7:00 p.m. at Cedar Ridge Middle School, 65 North 200 West, Hyde Park, Utah. The meeting will be held in the gymnasium of the school.

Agenda items include a report to shareholders of the Association's operations during the past year, a financial report for 2014, updates of completed projects and canal improvements and anticipated future improvements, the election of board members whose terms have expired, and other business as deemed pertinent.

In addition to the above agenda items, the shareholders shall consider and vote upon the following proposition:

Shall the board of directors (the "Board"), of Cache Highline Water Association (the "Association"), be authorized to:

(a) Enter into such contracts as shall be necessary to facilitate the planning, financing, administration, supervision, design and construction of a canal piping project to be known as the Logan and Northern Canal Piping and Pressurization Project (the "Project"), which shall consist generally of the construction and installation of 22,000 lineal feet of pipeline, 12-inches to 34-inches in diameter, commencing at 1500 North Street and extending within the existing canal easement of the Logan & Northern Canal to 4400 North Street; and

(b) Finance the Project from the following funding sources: (i)$1,000,000 WaterSmart grant from the U.S. Bureau of Reclamation, (ii) up to $380,000 Association match, and (iii) a $2,200,000 loan from the Board of Water Resources, to be financed at an annual interest rate of 2% over approximately 20 years with an annual payment of up to $135,000.

In addition to providing for the delivery of pressurized irrigation water to additional lands within the Association's irrigation system, the Project will result in the anticipated annual water savings of 1,530 acre-feet, which alone will greatly reduce the pumping costs that are incurred every year in delivering water from the two large wells in Smithfield to meet the Association's water obligations on the north end of the canal system. In conformance with the requirements of the Association's Bylaws, the Board has duly adopted a resolution finding that the Project is in the best interest of the Association and its shareholders, directing that the above proposition be submitted for an approving shareholder vote, with a unanimous recommendation that it be approved.