Document:

Tahoe Resources Inc. - Exhibit 4.1 - Filed by newsfilecorp.com

AMENDED AND RESTATED SHARE OPTION AND INCENTIVE SHARE PLAN

TABLE OF CONTENTS 

	Article
      1 Purpose and Interpretation 	2
      
	     Purpose
      	2
      
	     Definitions
      	2
      
	Article
      2 Provisions Applicable to Options and Awards 	8
      
	     Purpose
      of Granting Options and Awards 	8
      
	     Maximum
      Shares Reserved 	8
      
	     Incorporation
      of Terms of the Plan 	8
      
	     Shares
      Not Acquired 	9
      
	     Powers
      of the Board 	9
      
	     Delegation
      of Powers 	9
      
	     Amendment
      of the Plan 	9
      
	     Approvals
      	10
      
	     Withholding
      Tax 	10
      
	     No
      Rights as a Shareholder 	11
      
	     No
      Rights to Options or Awards 	11
      
	     No
      Right to Employment and the Provision of Services 	11
      
	     Adjustment
      of Options and Awards 	11
      
	Article
      3 Share Purchase Options 	13
      
	     Eligibility
      	13
      
	     Subscription
      Price 	13
      
	     Term
      of Options 	13
      
	     Vesting
      of Option Rights 	13
      
	     Variation
      of Vesting Periods for Options 	14
      
	     Limitation
      on Right to Exercise 	14
      
	     Right
      to Exercise Options 	15
      
	     Employees
      Not Eligible for Code Stock Options 	15
      
	     Option
      Commitment 	15
      
	     Manner
      of Exercise 	15
      
	     Delivery
      of Shares 	16
      
	Article
      4 Awards 	17
      
	     Eligibility
      	17
      
	     Agreements
      Evidencing Awards 	17
      
	     Restricted
      Share Awards 	17
      
	     Deferred
      Share Awards 	18
      
	     Variation
      of Vesting Periods for Awards 	18
      
	Article
      5 General 	19
      
	     Transferability
      	19
      
	     No
      Representation or Warranty 	19
      
	     Compliance
      with Rules and Laws 	19
      
	     Recoupment
      Policy 	19
      
	     Notices
      	20
      
	     Corporate
      Action 	20
      
	     Paperless
      Administration 	20
      
	     Governing
      Law 	20
      
	     Adoption
      of Plan 	20
      

	TAHOE RESOURCES INC.
    

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AMENDED AND RESTATED SHARE OPTION AND INCENTIVE SHARE PLAN

ARTICLE 1 
PURPOSE AND INTERPRETATION 

Purpose 

	1.1 	
      The purpose of the plan will be to advance the interests
      of the Corporation by encouraging equity participation in the Corporation
      through the acquisition of Common Shares of the
  Corporation.

Definitions 

	1.2 	
      In the Plan:

	Associate 	means, if used to indicate a
      relationship with any person, 

	 	(i) 	
      a partner, other than a limited partner, of that
      person,

	 	 	 
	 	(ii) 	
      a trust or estate in which that person has a substantial
      beneficial interest or for which that person serves as trustee or in a
      similar capacity,

	 	 	 
	 	(iii) 	
      an issuer in respect of which that person beneficially
      owns or controls, directly or indirectly, voting securities carrying more
      than 10% of the voting rights attached to all outstanding voting
      securities of the issuer, or

	 	 	 
	 	(iv) 	
      a relative, including the spouse, of that person or a
      relative of that person's spouse, if the relative has the same home as
      that person, if used to indicate a relationship with any
  person;

	Award 	
      means an award of Deferred Shares or Restricted Shares;      

	  	     
	Award Agreement 	
      means a written document by which each Award is
      evidenced; 

	  	     
	Blackout Period 	
      means the period during which the relevant Participant is
      prohibited from trading in Common Shares pursuant to restrictions imposed
      by the Corporation in accordance with its securities trading policies
      governing trades by Directors, Officers and Employees in the Corporation’s
      securities; 

	  	     
	Board and Board of Directors 	
  means the board of directors of the Corporation;  

	  	     
	Business Day 	
      means a day upon which the TSX is open for the trading of
      securities; 

	  	     
	Cause 	
      means “Cause” as defined in the Participant’s
      employment agreement with the Corporation, or, if not otherwise covered in
      an employment agreement, for purposes of this Plan means a termination of
      a Participant’s continuous service on account of: dishonesty, fraud,
      misconduct, unauthorized use or disclosure of confidential information or
      trade secrets pursuant to any proprietary information agreement or
      otherwise, breach of an employment contract, covenant not to compete or
      similar agreement with the Corporation, conviction or confession of a
      crime punishable by law (except minor violations), or continued failure to
      perform his duties after written notice of such failure, in each such case
      as determined by the Committee in its sole discretion, and its
      determination shall be conclusive and binding. A
Participant who agrees to resign from his or her
      affiliation with the Corporation in lieu of being terminated for Cause may
      be deemed, in the sole discretion of the Committee, to have been
  terminated for Cause for purposes of the Plan; 

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	Certificate 	
      means a share certificate (or other appropriate document
      or indicia of ownership) representing Common Shares of the Corporation;      

	  	     
	Change of Control 	
      means the occurrence of any one of the following events:      

	 	(i) 	
      less than 50% of the Board being composed of Directors
      who were Continuing Directors;

	 	 	 
	 	(ii) 	
      any person, entity or group of persons or entities acting
      jointly or in concert (an “Acquiror”) acquires or acquires control
      (including without limitation, the right to vote or direct the voting) of
      Voting Securities of the Corporation which when added to the Voting
      Securities owned of record or beneficially by the Acquiror or which the
      Acquiror has the right to vote or in respect of which the Acquiror has the
      right to direct the voting, would entitle the Acquiror and/or associates
      and/or affiliates of the Acquiror (as such terms are defined in the
      Securities Act) to cast or direct the casting of 41% or more of the votes
      attached to all of the Corporation’s outstanding Voting Securities which
      may be cast to elect directors of the Corporation or the successor
      corporation (regardless of whether a meeting has been called to elect
      directors);

	 	 	 
	 	(iii) 	
      the shareholders of the Corporation approve all necessary
      resolutions required to permit any person to accomplish the result set
      forth in §(ii) above, even if the securities have not yet been issued to
      or transferred to that Person;

	 	 	 
	 	(iv) 	
      the Corporation sells or otherwise transfers, including
      by way of the grant of a leasehold interest or joint venture interest (or
      one or more subsidiaries of the Corporation sells or otherwise transfers,
      including without limitation by way of the grant of a leasehold interest
      or joint venture interest) property or assets (A) aggregating more than
      50% of the consolidated assets (measured by either book value or fair
      market value) of the Corporation and its subsidiaries as at the end of the
      most recently completed financial year of the Corporation or (B) which
      during the most recently completed financial year of the Corporation
      generated, or during the then current financial year of the Corporation
      are expected to generate, more than 50% of the consolidated operating
      income or cash flow of the Corporation and its subsidiaries, to any other
      Person or Persons (other than one or more Affiliates of the Corporation),
      in such case the Change of Control shall be deemed to occur on the date of
      transfer of the assets representing one dollar more than 50% of the
      consolidated assets in the case of clause (A) or 50% of the consolidated
      operating income or cash flow in the case of clause (B), as the case may
      be; or

	 	 	 
	 	(v) 	
      the shareholders of the Corporation approve all necessary
      resolutions required to permit any person to accomplish the result set
      forth in §(iv) above;

	Code 	means the U.S. Internal Revenue
      Code of 1986, as amended; 

      

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	Code Stock Option 	
      means an Option to purchase Common Shares with the
      intention that such Option qualify as an “incentive stock option”
      as that term is defined in Section 422 of the Code. No Code Stock Option
      may be granted after the tenth anniversary of the date of adoption of the
      Plan; 

	  	     
	Committee 	
      means the Compensation Committee appointed by the Board
      of Directors to administer this Plan. All references in this Plan to the
      Committee means the Board of Directors if no such compensation committee
      has been appointed or if the Board as a whole chooses to address Committee
      matters; 

	  	     
	Common Shares 	
      means the common shares of the Corporation or, in the
      event of an adjustment contemplated in §2.18, such other shares to which a
      Participant may be entitled as a result of such adjustment; 

	  	  
	Continuing Director 	means: 

	 	(i) 	
      if in respect of the election of Directors, a Director
      who is nominated in the Management Proxy Circular as a Director;
  and

	 	 	 
	 	(ii) 	
      if after the election of Directors, a Director who was
      elected by the shareholders at the last occurring meeting of
      shareholders;

	Corporation 	
      means Tahoe Resources Inc., and for the purposes of
      administering the Plan and the Options issued thereunder includes its
      designated agents and nominees; 

	  	     
	Deferred Shares 	
      means Common Shares subject to Awards that will be issued
      to the Participant upon the passage of time, continued employment by the
      Corporation or upon such other terms and conditions as the Committee may
      determine in its discretion; 

	  	     
	Director 	
      means a person occupying the position of director on the
      Board; 

	  	     
	Disability 	
      for purposes of this Plan means solely because of disease
      or injury, the person is deemed by a qualified physician, selected by the
      Corporation, to be unable to work at his occupation with the Corporation
      and, with respect to a Director, means that, solely because of disease or
      injury, the Director is deemed by a qualified physician, selected by the
      Corporation, to be unable to carry out his responsibilities on the Board;
      

	  	     
	Employee 	
      means an individual who is an employee of the Corporation
      or of a subsidiary of the Corporation; 

	  	     
	Expiry Date 	
      means with respect to an Option, the day on which the
      Option lapses; 

	  	     
	Insider 	
      means: 

	 	(i) 	
      an insider as defined in the Securities Act, other than a
      person who fits within that definition solely by virtue of being a
      director or senior officer of a subsidiary of the Corporation,
  and

	 	 	 
	 	(ii) 	
      an Associate of any person who is an insider by virtue of
      §(i);

      

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      Non-Qualified Stock Option 
	
      means an Option to purchase Common Shares granted to a
      person in the United States or to a U.S. Person with the intention that
      such Option not qualify as an “incentive stock option” as that term
      is defined in Section 422 of the Code; 

	  	  
	Officer 	under this Plan means:
  

	 	(i) 	
      a chair or vice chair of the Board of Directors, or a
      chief executive officer, chief operating officer, chief financial officer,
      president, vice president, secretary, assistant secretary, treasurer,
      assistant treasurer or general manager,

	 	 	 
	 	(ii) 	
      an individual who is designated as an officer under a
      bylaw or similar authority of the registrant or issuer, or

	 	 	 
	 	(iii) 	
      an individual who performs functions similar to those
      normally performed by an individual referred to in § (i) or §
  (ii);

	Option 	
      means the right to purchase Common Shares granted
      hereunder to a Service Provider; 

	 	
       

	Option Commitment 	
      means the notice of grant of an Option provided by the
      Corporation hereunder to a Service Provider in the form determined by the
      Corporation from time to time; 

	 	
       

	Option Effective Date 	
      for an Option means the date of grant thereof; 

	 	
       

	Option Rights 	
      means the rights of a Participant to acquire Common
      Shares under an Option held by the Participant; 

	 	
       

	Optioned Shares 	
      means Common Shares subject to an Option; 

	 	
       

	Outstanding Issue 	
      means the number of Common Shares outstanding on a
      non-diluted basis; 

	 	
       

	Participant 	
      means a person who receives and accepts Options or
      Awards; 

	 	
       

	Performance Share Awards 	
      means performance share awards issued pursuant to the
      Corporation’s PSA Plan; 

	 	
       

	Person 	
      means any natural person, corporation, company,
      partnership, firm, voluntary association, joint venture, trust,
      unincorporated organization, authority or any other entity whether acting
      in an individual, fiduciary or other capacity; 

	 	
       

	Plan 	
      means this Amended and Restated Share Option and
      Incentive Share Plan; 

	 	
       

	PSA Plan 	
      means the Corporation’s Performance Share Award Plan, as
      may be amended from time to time; 

	 	
       

	Regulatory Approval 	
      means the approval of the TSX and any other securities
  regulatory agency that may have jurisdiction in the circumstances;  

	 	
       

	Reserved for Issuance 	
      refers to Common Shares that may be issued in the future
      pursuant to Options and Awards; 

	 	
       

	Retired 	
      means with respect to an Officer or Employee, the
      retirement of the Officer or Employee from his duties with the Corporation
      after (i) reaching the age of sixty years and having at least five years of employment
      with the Corporation and/or its Subsidiaries, or (ii) completing twenty
      years of employment with the Corporation and/or its Subsidiaries, and,
      with respect to a Director, retirement occurs when a Director is not
      nominated for re-election as a Director or if nominated is not re-elected
  as a Director; 

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	Restricted Shares 	
      means Common Shares subject to Awards that are issued but
      which will only be delivered to the Participant upon the passage of time,
      continued employment of the Participant by the Corporation or upon such
      other terms and conditions as the Committee may determine in its
      discretion; 

	  	     
	Securities Act 	
      means the Securities Act, R.S.B.C. 1996, c. 418, as
      amended from time to time; 

	  	     
	Service Provider 	
      means: 

	 	(i) 	
      an Employee, Officer, or Director of the Corporation or
      of any of its Subsidiaries; and

	 	 	 
	 	(ii) 	
      an individual, other than an Employee, Director or
      Officer of the Corporation, that is engaged to provide ongoing consulting,
      technical, management or other services on a bona fide basis to the
      Corporation or to a Subsidiary under a written contract between the
      Corporation or the Subsidiary for an initial, renewable or extended period
      of twelve months or more and a company or partnership of which the
      individual consultant is an employee or a shareholder or
  partner;

	Share Compensation Arrangement 	
      means the Plan described herein, the PSA Plan and any
      other stock option, stock option plan, employee stock purchase plan or any
      other compensation or incentive mechanism involving the issuance or
      potential issuance of Common Shares to one or more Service Providers,
      including a share purchase from treasury which is financially assisted by
      the Corporation by way of a loan, guaranty or otherwise; 

	  	
       

	Subscription Price 	
      means the amount payable per Common Share on the exercise
      of an Option, as determined in accordance with §3.2, as such may be
      amended from time to time pursuant to §2.18; 

	  	
       

	Subsidiary 	
      means subsidiary as determined under the Business
      Corporations Act (British Columbia); 

	  	
       

	Take-Over Bid 	
      has the meaning assigned to that term in the Securities
      Act but excludes an exempt take-over bid as determined under the
      Securities Act; 

	  	
       

	Triggering Event 	
      means a termination of an Employee’s or Officer’s
      employment for good reason as defined under Code Section 409A, which will
      be any one of the following events which occurs without the express
      agreement in writing of the Employee or Officer: 

	  	
       

		
      (a)        a material
      diminution in the authority, duties, or responsibilities of the Employee
      or Officer as in effect immediately prior to the Change of Control;
  

	  	
       

	  	
      (b)        a material
      diminution in the Employee's or Officer’s base salary; 

	  	
       

		
      (c)        a material
      diminution in the authority, duties or responsibilities of the individual
      to whom the Employee or Officer is required to report, including a
      requirement that the Employee or Officer no longer report to such
      individual; 

      

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      (d)        a material
      diminution in the budget over which the Employee or Officer retains
      authority; 

	  	
       

		
      (e)        a material
      change in the geographic location at which the Employee or Officer is
      regularly required immediately prior to the Change of Control to carry out
      the terms of his or her employment with the Corporation; or 

	  	
       

		
      (f)        any other
      action or inaction by the Corporation that constitutes a material breach
      of the terms of the Employee's or Officer’s employment with the
      Corporation; 

	  	
       

	TSX 	
      means The Toronto Stock Exchange; and 

	  	
       

	Voting Securities 	
      means Common Shares and any other shares entitled to vote
      for the election of Directors and will include any securities, whether or
      not issued by the Corporation, which are not shares entitled to vote for
      the election of Directors but are convertible into or exchangeable for
      shares which are entitled to vote for the election of Directors including
      any options or rights to purchase such shares or securities.
  

  

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ARTICLE 2 
PROVISIONS APPLICABLE TO OPTIONS AND
AWARDS 

Purpose of Granting Options and Awards 

	2.1 	
      The purpose of granting Options and Awards is to attract,
      retain and motivate Service Providers and to compensate them for their
      loyalty and contribution to the Corporation’s long-term growth and
      development, and to encourage them to acquire a proprietary interest in
      the success of the Corporation.

Maximum Shares Reserved 

	2.2 	
      The maximum aggregate number of Common Shares that are
      Reserved for Issuance under Options is 9,340,698 Common Shares and the
      maximum number of Common Shares that are Reserved for Issuance under
      Awards and Performance Share Awards is 11,488,002 Common Shares.

	 	 
	2.3 	
      The maximum aggregate number of Common Shares that, under
      all Share Compensation Arrangements:

	 	(a) 	
      may be Reserved for Issuance to Insiders at any time, may
      not exceed 10% of the Outstanding Issue;

	 	 	 
	 	(b) 	
      may be issued to Insiders within a one year period, may
      not exceed 10% of the Outstanding Issue at that time;

	 	 	 
	 	(c) 	
      may be issued to any one Insider and his or her
      Associates within a one year period, may not exceed 5% of the Outstanding
      Issue;

	 	 	 
	 	(d) 	
      may be issued or Reserved for Issuance to non-Employee
      Directors may not exceed 1% of the Outstanding Issue at that time;
    and

	 	 	 
	 	(e) 	
      may be issued or Reserved for Issuance to any one
      non-Employee Director in a calendar year must not exceed an award value of
      C$150,000 per such non-Employee Director.

The limit in §(e) above does not apply where the Corporation is
making an initial grant to a new non-Employee Director upon that person joining
the Board. 

	2.4 	
      For the purposes of §2.3:

	 	 	 
		(a) 	
      Common Shares issuable to an Insider pursuant to a stock
      option or other entitlement that was granted before the person became an
      Insider will be excluded in determining the number of Common Shares
      issuable to Insiders; and

	 	 	 
		(b) 	
      Common Shares issuable to a Director pursuant to a stock
      option or other entitlement that was granted before the person became a
      Director, or while the Director was also an Officer, will be excluded in
      determining the number of Common Shares issuable to
  Directors.

Incorporation of Terms of the Plan 

	2.5 	
      Subject to specific variations approved by the Board, all
      terms and conditions set out herein relating to Options will be
      incorporated into and form part of an Option and all terms and conditions
      set out herein relating to Awards will be incorporated into and form part
      of an Award.

      

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Shares Not Acquired 

	2.6 	
      Any Common Shares not acquired under an Option or Award
      which has expired or been cancelled or terminated may be made the subject
      of a further Option or Award, as the case may be, pursuant to the
      provisions of this Plan.

Powers of the Board 

	2.7 	
      The Board will be responsible for the general
      administration of the Plan and the proper execution of its provisions, the
      interpretation of the Plan and the determination of all questions arising
      hereunder. Without limiting the generality of the foregoing, the Board has
      the power to:

	 	 	 
		(a) 	
      allot Common Shares for issuance in connection with
      Options and Awards granted under the Plan;

	 	 	 
		(b) 	
      grant Options and Awards hereunder; and

	 	 	 
		(c) 	
      subject to §2.9, §2.10 and §2.11, Regulatory Approval or
      any shareholder approval required under applicable laws, rules and
      regulations, amend, suspend, terminate or discontinue the Plan, or revoke
      or alter any action taken in connection therewith, except that no
      amendment or suspension of the Plan will, without the written consent of
      the affected Participants, alter or impair any Option or Award granted
      under the Plan.

Delegation of Powers 

	2.8 	
      Save and except as otherwise provided herein, the Board’s
      powers and duties hereunder are delegated to the Committee, which will
      exercise the powers and discharge the duties of the Board in respect of
      the Plan to the same extent as the Board is hereby authorized so to
    do.

Amendment of the Plan 

	2.9 	
      Subject to any specific limitations contained in the
      Plan, and notwithstanding the provisions of §2.8, the Board reserves the
      right, in its absolute discretion, to amend, modify or terminate the Plan
      at any time.

	 	 	 
	2.10 	
      Notwithstanding §2.9, the Board may not, without approval
      of the holders of a majority of the issued and outstanding Common Shares
      present and voting in person or by proxy at a meeting of holders of such
      securities, amend the Plan or an Option or Award to:

	 	 	 
		(a) 	
      increase the number of Common Shares Reserved for
      Issuance under the Plan;

	 	 	 
		(b) 	
      make any amendment that would reduce the Subscription
      Price of an outstanding Option (including a cancellation and reissue of an
      Option at a reduced Subscription Price);

	 	 	 
		(c) 	
      amend or delete §3.3 to allow for the term of any Option
      to be longer than the period described therein;

	 	 	 
		(d) 	
      permit assignments, or exercises other than by the
      Participant, of Options beyond that contemplated by §3.6, except for an
      amendment that would permit the assignment of an Option for estate
      planning or estate settlement purposes;

	 	 	 
		(e) 	
      amend the Plan to provide for other types of compensation
      through equity issuance, unless the change to the Plan or an Option
      results from the application of §2.18;

	 	 	 
		(f) 	
      amend or delete §2.3;

      

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	 	(g) 	
      amend or delete §2.9, §2.10 and §2.11; and

	 	 	 
	 	(h) 	
      amend or delete §4.1.

	2.11 	
      The Board may make the following amendments to the Plan,
      an Option or an Award without obtaining shareholder approval:

	 	 	 
		(a) 	
      amendments to the terms and conditions of the Plan
      necessary to ensure that the Plan complies with the applicable regulatory
      requirements, including without limitation the rules of the TSX or any
      national securities exchange or system on which the Common Shares are then
      listed or reported, or by any regulatory body having jurisdiction with
      respect thereto;

	 	 	 
		(b) 	
      making adjustments to outstanding Options in the event of
      certain corporate transactions as contemplated by §2.18;

	 	 	 
		(c) 	
      to change to the vesting or termination provisions of (i)
      an Option which does not entail an extension of the term of an Option
      beyond the period described in §3.3, (ii) an Award, or (iii) the
    Plan;

	 	 	 
		(d) 	
      amendments to the provisions of the Plan respecting
      administration of the Plan and eligibility for participation under the
      Plan;

	 	 	 
		(e) 	
      amendments to the provisions of the Plan respecting the
      terms and conditions on which Options or Awards may be granted pursuant to
      the Plan; and

	 	 	 
		(f) 	
      amendments to the Plan that are of a “housekeeping
      nature”.

Approvals 

	2.12 	
      This Plan will be subject to shareholder approval and
      acceptance if necessary by the TSX in compliance with all conditions
      imposed by the TSX. Any Options or Awards granted prior to such acceptance
      will be conditional upon such acceptance being given and any conditions
      complied with and no Options or Awards may be exercised unless such
      acceptance is given and such conditions are complied with.

	 	 
	2.13 	
      In addition, in connection with Code Stock Options
      granted under the Plan, the Board will obtain shareholder approval of a
      Plan amendment to the extent required by Section 422 of the Code, and any
      change or adjustment to an outstanding Code Stock Option will not, without
      the consent of the Participant, be made in such a manner so as to
      constitute a “modification” that would cause such Code Stock Option to
      fail to qualify as an Code Stock Option.

Withholding Tax 

	2.14 	
      If the Corporation determines that under the requirements
      of applicable taxation laws it is obliged to withhold for remittance to a
      taxing authority any amount as a condition of the issuance of any Common
      Shares pursuant to any Option or Award, the Corporation may, prior to and
      as a condition of issuing the Common Shares, require the Participant to
      pay to the Corporation such amount as the Corporation is obliged to remit
      to such taxing authority in respect of the issuance of the Common Shares.
      Any such payment will be due no later than the date as of which any amount
      with respect to the issuance of the Common Shares must be remitted by the
      Corporation to such taxing authority. Payment may be in cash or, with the
      prior approval of and upon conditions established by the Committee, by
      withholding or tendering of Common Shares, valued at the closing trading
      price of the Common Shares on the TSX for the previous day prior to the
      date in question.

      

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No Rights as a Shareholder 

	2.15 	
      No Participant will have any of the rights of a
      shareholder of the Corporation with respect to Common Shares subject to
      Options or Awards until the issuance of such shares. Except as otherwise
      provided herein, no adjustments will be made for dividends, distributions
      or other rights (whether ordinary or extraordinary, and whether in cash,
      securities or other property) for which the record date is prior to the
      date such shares are issued.

No Rights to Options or Awards 

	2.16 	
      No Service Provider will have any claim to be granted any
      Option or Award under the Plan, and there is no obligation for uniformity
      of treatment of Service Providers or beneficiaries of Options and Awards
      under the Plan. The terms and conditions of Options and Awards need not be
      the same with respect to any Participant or with respect to different
      Participants.

No Right to Employment and the Provision of Services

	2.17 	
      Nothing contained in the Plan will confer upon a
      Participant any right with respect to employment or provision of services
      with the Corporation or a Subsidiary, or interfere in any way with the
      right of the Corporation or a Subsidiary to terminate the Participant’s
      employment or service at any time. Participation in the Plan by a
      Participant will be at the discretion of the
Committee.

Adjustment of Options and Awards 

	2.18 	
      The number of Common Shares subject to an Option, Award
      or Performance Share Award will be subject to adjustment in the events and
      in the manner following:

	 	 	 
		(a) 	
      in the event that the Board determines that any dividend
      or other distribution (whether in the form of cash, Common Shares, other
      securities or other property), recapitalization, stock split, reverse
      stock split, reorganization, merger, consolidation, combination, issuance
      of warrants or other rights to purchase Common Shares or other securities
      of the Corporation or other similar corporate transaction or event, to, or
      which affects, all holders of common shares pro rata, affects the Common
      Shares such that an adjustment is determined by the Board to be
      appropriate in order to prevent dilution or enlargement of the benefits or
      potential benefits intended to be made available under the Plan, then the
      Board may, in such manner as it may deem equitable, adjust any or all
      of:

	 	(i) 	
      the number and type of Common Shares (or other securities
      or other property) that thereafter may be made the subject of Options,
      Awards or Performance Share Awards,

	 	 	 
	 	(ii) 	
      the number and type of Common Shares (or other securities
      or other property) that may be acquired upon the exercise of outstanding
      Options or which will be subject to outstanding Awards or Performance
      Share Awards, and

	 	 	 
	 	(iii) 	
      the Subscription Price with respect to outstanding
      Options;

	 	(b) 	
      an adjustment will take effect at the time of the event
      giving rise to the adjustment, and the adjustments provided for in this
      section are cumulative;

	 	 	 
	 	(c) 	
      the Corporation will not be required to issue fractional
      shares in satisfaction of its obligations hereunder and accordingly any
      fractional interest in a Common Share or other security that would, except
      for the provisions of this §2.18, be deliverable upon
the exercise of an Option or vesting of an Award or
      Performance Share Award will be cancelled and not be deliverable by the
  Corporation; and

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	 	(d) 	
      if any questions arise at any time with respect to the
      Subscription Price or number of Common Shares or other securities
      deliverable upon exercise of an Option or pursuant to the vesting of an
      Award or Performance Share Award in any of the events set out in this
      §2.18, such questions will be conclusively determined by the Corporation’s
      Auditors, or, if they decline to so act, any other firm of Chartered
      Accountants, in Vancouver, British Columbia that the Corporation may
      designate and who will have access to all appropriate records, and such
      determination will be binding upon the Corporation and all
      Participants.

      

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ARTICLE 3 
SHARE PURCHASE OPTIONS 

Eligibility 

	3.1 	
      Options may be granted to Service Providers other than
      non-Employee Directors.

Subscription Price 

	3.2 	
      The Subscription Price per Optioned Share will be the
      following:

	 	 	 
		(a) 	
      the closing price for the Common Shares on the TSX on the
      last trading day before the date of grant of the Option; or

	 	 	 
		(b) 	
      if the Common Shares are not listed on the TSX, then as
      calculated in §(a) above by reference to the price on any other stock
      exchange on which the Common Shares are listed (if more than one, then
      using the exchange on which a majority of Common Shares are
  traded).

If the Common Shares are not listed on a stock exchange, the
Subscription Price will be that determined by the directors using good faith
discretion by applying any reasonable valuation method, which may be an
independent third party valuation; provided, that any such determination for an
Option or Award subject to Code Section 409A shall be made in compliance with
the regulations under Code Section 409A.

Factors to be considered in establishing fair market value of
an Option or Award subject to Code Section 409A shall include as applicable: the
value of tangible and intangible assets of the Corporation; the present value of
anticipated future cash flows of the Corporation; the market value of stock or
equity interests in similar corporations and other entities engaged in trades or
businesses substantially similar to those engaged in by the Corporation; the
value of which can be readily determined through nondiscretionary; objective
means (such as through trading prices on an established securities market or an
amount paid in an arm’s length private transaction); recent arm’s length
transactions involving the sale or transfer of Corporation stock or equity
interests; and other relevant factors such as control premiums or discounts for
lack of marketability and whether the valuation method is used for other
purposes that have a material economic effect on the service recipient, its
stockholders, or its creditors. The use of a valuation method shall take into
consideration all available information material to the value of the Corporation
at the time of the grant of the Option or Award and the fair market value shall
be established not longer than 12 months prior to the date of the grant of the
Option or Award. 

Term of Options 

	3.3 	
      Except as described in this §3.3, the term of an Option
      will be such period after the Option Effective Date of the Option, not
      exceeding 7 years, as the Committee determines at the time of granting of
      the Option. However, if the Expiry Date for an Option occurs during a
      Blackout Period applicable to the relevant Participant, or within five
      Business Days after the expiry of a Blackout Period applicable to the
      relevant Participant, the Expiry Date for that Option will be the date
      that is the 10th Business Day after the expiry date of the Blackout Period
      notwithstanding that such date may have the effect of extending the period
      of the Option beyond the 7 years described above.

Vesting of Option Rights 

	3.4 	
      Options granted at a particular time may be exercised
      only:

      

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	 	(a) 	
      after the Option Commitment is received by the
      Participant from the Corporation’s Corporate Secretary; and

	 	 	 
	 	(b) 	
      in accordance with the vesting rights related to the
      Option as prescribed by the Corporation in the Option
  Commitment.

Variation of Vesting Periods for Options 

	3.5 	
      The Committee may exercise its discretion in regards to
      varying applicable vesting periods of Options as
follows:

(a)      
 if within 12 months of a Change of Control of the Corporation a
Participant who is an Employee or Officer is terminated for any reason other
than just cause or a Triggering Event occurs and the Employee or Officer elects
to terminate his or her employment agreement, the Committee may in its
discretion accelerate the vesting of the Participant’s Options such that the
Options held by that Participant may be exercised by the Participant in full or
in part at any time before the applicable vesting period for those Options,
except such discretion must be exercised to accelerate vesting where a
Participant’s employment agreement requires the acceleration of vesting in such
circumstances; and 

(b)      
 in connection with a Change of Control for Participants who are neither
Employees nor Officers or a Take-Over Bid and in cases other than a Change of
Control, the Committee may in its discretion accelerate vesting of a
Participant’s Options such that the Options held by that Participant may be
exercised by the Participant in full or in part at any time before the
applicable vesting period for those Options.

Limitation on Right to Exercise 

	3.6 	
      No Option may be exercised after the Participant, if a
      Director, has ceased to be a Director or if an Employee or other Service
      Provider, has left the employ or service of the Corporation, except as
      follows:

	 	 	 
		(a) 	
      in the case of death of a Participant, all unvested
      rights of the Participant under the Option will be deemed to have become
      fully vested immediately before the time of such Participant's death, and
      the personal representatives of the Participant will be entitled to
      exercise the Option at any time by the earlier of (i) the Expiry Date of
      the Option, and (ii) the first anniversary of the date on which the
      Participant died;

	 	 	 
		(b) 	
      in the case of a Participant who becomes Retired, all
      unvested Option Rights will be deemed to have become fully vested
      immediately before the time that the Participant Retired, and the Options
      held by the Participant will be exercisable by the earlier of (i) the
      Expiry Date of the Option, or (ii) if a Non-qualified Stock Option, the
      first anniversary of the date on which the Participant Retired, or, if a
      Code Stock Option, as provided in the Termination Section of the Option
      Commitment for Code Stock Options;

	 	 	 
		(c) 	
      in the case of a Participant becoming unable to work due
      to illness, injury or disability whether or not such Participant is
      entitled to or in receipt of disability benefits, all Option Rights will
      vest, and the Options held by the Participant will be exercisable on the
      same terms as if the Participant had continued to be a Service Provider;
      provided that, if such Option is a Code Stock Option, the Option will be
      exercisable as provided in the Termination Section of the Option
      Commitment for Code Stock Options;

	 	 	 
		(d) 	
      in the case of a Participant resigning his office, or
      terminating his employment or service, or being dismissed without Cause,
      the Option Rights that have accrued to such Participant up to the time of
      resignation or termination will be exercisable by the
  earlier of (i) the Expiry Date of the Option and (ii) the 30th
      day after the date of resignation or termination, except where (1) the
      Committee has exercised its discretion pursuant to §3.5(a) in connection
      with a Change of Control or (2) in the case of a Participant being
      dismissed without Cause and where such Participant’s employment agreement
      requires the acceleration of vesting in such circumstances, in which case
      those Options for which the applicable vesting period has been accelerated
      pursuant to (1) or (2) will be exercisable by the applicable Participant
      no later than the earlier of (i) the Expiry Date of the Option, and (ii)
      the date which is 12 months from the date of such termination;
  and

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	 	(e) 	
      in the case of a Participant being dismissed from office,
      employment or service for Cause, the Option and all Option Rights that had
      accrued to the Participant to the date of termination will terminate
      immediately unless otherwise determined by the
Board.

Notwithstanding the provisions of §(d), the Committee may, with
the Participant’s consent, extend the time period during which an Option may be
exercised to no longer than the first to occur of the Expiry Date for the Option
and the end of an agreed upon severance period (but not later than the period
permitted under Code Section 409A) and may permit an Option to be exercised in
respect of any Option Rights that vest during any agreed upon severance period.

Right to Exercise Options 

	3.7 	
      Subject to §3.6(a) or as permitted by applicable
      regulatory authorities in connection with a transfer to a registered
      retirement savings plan or registered retirement income fund established
      by or for the Participant or under which the Participant is the
      beneficiary, an Option may be exercisable only by the Participant to whom
      it is granted.

Employees Not Eligible for Code Stock Options 

	3.8 	
      Individuals who are not Employees of the Corporation or
      of one of its subsidiaries and who are not subject to taxation in the
      United States, may not be granted Code Stock Options. For purposes of this
      §3.8 “subsidiary” will have the meaning attributed to that term for
      purposes of Section 424(f) of the Code.

Option Commitment 

	3.9 	
      Upon grant of an Option, the Corporation will provide to
      the Service Provider an Option Commitment detailing the terms of the
      Service Provider’s Option, and upon the acceptance and acknowledgement of
      such terms by the Service Provider (in the manner prescribed by the
      Corporation, including through a third party administrator’s electronic
      portal), the Service Provider will be a Participant under this Plan and
      will have the right to purchase the Optioned Shares at the Subscription
      Price set out in the Option Commitment.

Manner of Exercise 

	3.10 	
      A Participant who wishes to exercise his or her Option
      may do so by following the exercise procedures (as may be amended from
      time to time) as prescribed by the Corporation in the Option Commitment
      and which are in effect at the time of exercise, which may include
      submitting to the Corporation:

	 	 	 
		(a) 	
      a notice of exercise provided in a manner consistent with
      §5.8;

	 	 	 
		(b) 	
      cash, a cheque or some other form of guaranteed payment
      for the aggregate Subscription Price for the Optioned Shares being
      acquired; and

      

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	 	(c) 	
      should the Common Shares be listed on the TSX or another
      recognized exchange at the time an Option is exercised, then payment may
      also be made through a special sale and remittance procedure pursuant to
      which the Participant shall concurrently provide irrevocable written
      instructions or instructions through electronic means acceptable to the
      Corporation (1) to a brokerage firm or another third party administrator
      acceptable to or designated by the Corporation to effect the immediate
      sale of the purchased shares and remit to the Corporation, out of the sale
      proceeds available on the settlement date, sufficient funds to cover the
      aggregate exercise price payable for the purchased shares plus all
      applicable withholding taxes, and (2) to the Corporation to deliver the
      purchased shares directly to such brokerage firm in order to complete the
      sale.

Delivery of Shares 

	3.11 	
      Not later than five Business Days after receipt of the
      notice of exercise and payment for the Optioned Shares being acquired, the
      Corporation will direct its transfer agent to deliver the appropriate
      number of Optioned Shares to the Participant.

      

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ARTICLE 4 

    AWARDS 

Eligibility 

	4.1 	
      Recipients of Awards will be limited to Service Providers
      who are designated from time to time by the Committee in the Committee’s
      sole discretion. Participation will be voluntary.

Agreements Evidencing Awards 

	4.2 	
      Each Award granted under the Plan will be evidenced by a
      document in such form and will contain such terms and conditions as the
      Committee in its sole discretion deems appropriate. The terms of the Award
      Agreements may change from time to time, and the terms of separate Award
      Agreements need not be identical, but each Award Agreement will include
      the following:

	 	 	 
		(a) 	
      an Award may be awarded in consideration for past or
      future service actually rendered to the Corporation or a
  Subsidiary;

	 	 	 
		(b) 	
      subject to other limitations herein, Common Shares
      awarded under an Award Agreement will vest in accordance with a vesting
      schedule set forth in the Award Agreement; and

	 	 	 
		(c) 	
      the Committee may grant Awards in tandem with or, subject
      to pre-clearance with the TSX and, if necessary, subject to written
      consent of the Participant, in substitution for any other Award or Awards
      granted under this Plan or any award granted under any other plan of the
      Corporation. By accepting an Award pursuant to the Plan, a Participant
      thereby agrees that the Award will be subject to all of the terms and
      conditions of the Plan and the applicable Award
  Agreement.

Restricted Share Awards 

	4.3 	
      Restricted Share Awards will be governed by the
      following:

	 	 	 
		(a) 	
      the Committee may grant Restricted Shares to Directors
      and Officers in such amounts and subject to such terms and conditions as
      the Committee may determine in its sole discretion; and

	 	 	 
		(b) 	
      promptly after a Participant accepts a Restricted Share
      Award, the Corporation will issue in the Participant’s name the Common
      Shares covered by the Award. Upon the issuance of such Common Shares, the
      Participant will have the rights of a shareholder with respect to the
      Restricted Shares, subject to any restrictions and conditions as the
      Committee in its discretion may include in the applicable Award Agreement.
      Unless the Committee otherwise determines, any Common Shares issued
      evidencing Restricted Shares will remain in the possession of the
      Corporation or its designated agent until such shares are free of any
      restrictions specified in the applicable Award Agreement, and the
      Participant will execute a transfer power in favour of the Corporation to
      allow for the transfer or cancellation of such shares in the event the
      Participant fails to satisfy the restrictions. The Participant shall
      determine whether or not to make an election under Code Section 83, and,
      if made, shall provide a copy of such timely election to the
      Corporation.

      

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4.4 		
Restricted Shares may not be, other than by will or by the laws of descent and distribution, sold, exchanged, transferred, assigned, pledged, hypothecated or otherwise disposed of (including through the use of any cash-settled
instrument) except as specifically provided in the applicable Award Agreement. The Committee at the time of grant will specify the date or dates on which the non-transferability of the Restricted Shares will lapse.

	

Deferred Share Awards 

	
4.5 		
Deferred Share Awards will be governed by the following:

	
	 	 	 
		
(a) 		
the Committee may grant Deferred Shares to Participants in such amounts and subject to such terms and conditions as the Committee determines in its sole discretion; and

	
	 	 	 
		
(b) 		
promptly after a Participant accepts a Deferred Share Award, the Corporation will reserve for issue to the Participant the number of Common Shares covered by the Award. The Common Shares reserved for issue to the Participant will
be issued and delivered to the Participant in accordance with the restrictions and conditions specified by Code Section 409A and by the Committee in the applicable Award Agreement.

	

Variation of Vesting Periods for Awards 

	
4.6 		
Unless otherwise provided in the Award Agreement, if (i) a Participant’s employment and/or office with the Corporation and any of its Subsidiaries is terminated due to the Participant becoming Retired or Disabled or due to
death, or (ii) a Participant is dismissed without Cause and such Participant’s employment agreement requires the acceleration of vesting in such circumstances, there will be immediate vesting of all of the Participant’s rights to receive
Common Shares under his Award upon the effective date such employment or office is terminated.

	
	 	 	 
	
4.7 		
Subject to §4.8,

	
	 	 	 
		
(a) 		
for any termination of employment or office other than for those reasons specified in §4.6, only the Awards that have vested before the termination date will be payable, and

	
	 	 	 
		
(b) 		
any Awards that have not vested before the termination date will expire on the termination date.

	

	
4.8 		
Notwithstanding the provisions of §4.7,

	
	 	 	 
		
(a) 		
if within 12 months of a Change of Control of the Corporation a Participant who is an Employee or Officer is terminated for any reason other than just cause or a Trigger Event occurs and the Employee or Officer elects to terminate
his or her employment agreement, the Committee may in its discretion accelerate vesting of the Participant’s Awards such that the Awards will become immediately vested as of the date of termination so that such Awards become payable as of the
date of termination, except such discretion must be exercised to accelerate vesting where a Participant’s employment agreement requires the acceleration of vesting in such circumstances, and subject to compliance with all applicable tax and
securities laws; and

	
	 	 	 
		
(b) 		
for any termination of employment or office other than for those reasons specified in §4.6 and §4.8(a), the Committee may, with the Participant’s consent, accelerate vesting of the Participant’s Awards so
that such Awards become payable, subject to compliance with all applicable tax and securities laws.

	

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ARTICLE 5 
GENERAL 

Transferability 

	5.1 	
      The benefits and Option Rights or Awards accruing to a
      Participant under the Plan will not be transferable by the Participant
      other than in the manner provided for in the Plan.

No Representation or Warranty 

	5.2 	
      The Corporation makes no representation or warranty as to
      the future market value of Common Shares.

Compliance with Internal Revenue Code Section 409A 

	5.3 	
      To the extent required to avoid penalties under Internal
      Revenue Code Section 409A, the Plan Administrator intends any Option or
      Award issued under the Plan to be exempt from or otherwise to comply in
      all respects with Code Section 409A and related regulations and intends to
      interpret and administer any Option or Award issued under the Plan in
      accordance with Code Section 409A. Notwithstanding any provision to the
      contrary, all taxes associated with participation in the Plan, including
      any liability imposed under Code Section 409A, shall be borne by the
      Participant.

Compliance with Rules and Laws 

	5.4 	
      The Corporation’s obligation to issue and deliver Common
      Shares under any Option or Award is subject to:

	 	 	 
		(a) 	
      the satisfaction of all requirements under applicable
      securities law in respect thereof and obtaining all regulatory approvals
      as the Corporation will determine to be necessary or advisable in
      connection with the authorization, issuance or sale thereof;

	 	 	 
		(b) 	
      the admission of such Common Shares to listing on any
      stock exchange in Canada or the United States on which Common Shares may
      then be listed; and

	 	 	 
		(c) 	
      the receipt from the Participant of such representations,
      agreements and undertakings as to future dealings in such Common Shares as
      the Corporation determines to be necessary or advisable in order to
      safeguard against the violation of the securities laws of any
      jurisdiction.

	5.5 	
      In this connection, the Corporation will take all
      reasonable steps to obtain such approvals and registrations as may be
      necessary for the issuance of such Common Shares in compliance with
      applicable securities laws and for the listing of such Common Shares on a
      stock exchange in Canada or the United States on which the Common Shares
      are then listed.

Recoupment Policy 

	5.6 	
      All Options and Awards will be subject to the
      Corporation’s incentive compensation recoupment
policy.

Share Ownership Policy 

	5.7 	
      The Corporation has a share ownership policy in place
      which applies to specific executive officers of the Corporation (including
      the Chief Executive Officer) and states that, while the executive officer
      is not in compliance with his/her ownership requirement under the share
      ownership policy, the executive officer must retain an amount equal to 50%
      of his/her net Common Shares (“Net Shares”)
received as a result of the exercise of Options or the vesting of any Awards or
Performance Share Awards granted to the executive officer by the Corporation.
“Net Shares” are those Common Shares which remain after Common Shares are sold
to pay any applicable exercise price for Options and to satisfy any tax
obligations arising in connection with the exercise of Options or the vesting of
Awards and Performance Share Awards, as the case may be. 

      

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Notices 

	5.8 	
      All notices are to be given:

	 	 	 
		(a) 	
      by the Participant to the Corporation in a manner
      prescribed by the Corporation (as may be amended from time to time),
      including through a third party administrator’s electronic portal, and any
      notice given by the Participant will not be effective until actually
      received by the Corporation in the above noted manner; and

	 	 	 
		(b) 	
      any notice to be given to the Participant will be
      sufficiently given if delivered (i) through a third party administrator’s
      electronic portal as established by the Corporation at the time such
      notice is given, (ii) personally, or (iii) by postage prepaid mail to the
      last address of the Participant on the records of the Corporation, and
      such notice will be effective upon transmission or delivery or if mailed
      five days after mailing.

Corporate Action 

	5.9 	
      Nothing contained in this Plan or any Option or Award
      granted will be construed so as to prevent the Corporation or any
      Subsidiary of the Corporation from taking corporate action which is deemed
      by the Board to be appropriate or in the best interest of the Corporation,
      whether or not such action would have an adverse effect on this Plan or on
      any Award or Option granted.

Paperless Administration 

	5.10 	
      In the event that the Corporation establishes, for itself
      or using the services of a third party, an automated system for the
      documentation, granting or exercise of Options or Awards, such as a system
      using an internet website or interactive voice response, then the
      paperless documentation, granting or exercise of Options or Awards by a
      Participant may be permitted through the use of such an automated
      system.

Governing Law 

	5.11 	
      This Plan is established under the laws of British
      Columbia and the rights of all parties and the construction and effect of
      each provision of this Plan will be according to the laws of British
      Columbia, the federal laws of Canada applicable in British Columbia, and,
      to the extent applicable, the United States Internal Revenue
  Code.

Adoption of Plan 

	5.12 	
      This Plan was adopted on the 20th day of April, 2010, and
      amended effective (i) March 7, 2013 upon the receipt of shareholder
      approval on May 9, 2013, (ii) March 9, 2017, and (iii) February 23, 2018
      upon the receipt of shareholder approval on May 3,
2018.

TAHOE RESOURCES INC. 

	Per: 	 /s/ Ronald W. Clayton 	 
	  	Ronald W. Clayton, President and
      CEO 	 

    

    	TAHOE RESOURCES INC.Tahoe Resources Inc. - Exhibit 4.2 - Filed by newsfilecorp.com

PERFORMANCE SHARE AWARD PLAN 

TABLE OF CONTENTS 

	ARTICLE
    1 DEFINITIONS AND INTERPRETATION 	2
      
	 	1.1
      Definitions 	2
      
	 	1.2
      Headings 	5
      
	 	1.3
      Context, Construction 	5
      
	 	1.4
      References to this Performance Share Award Plan 	5
      
	 	1.5
      Canadian Funds 	5
      
	 	 	  
	ARTICLE
      2 PURPOSE AND ADMINISTRATION OF THE PERFORMANCE SHARE AWARD
    PLAN 	6
      
	 	2.1
      Purpose of the Performance Share Award Plan 	6
	 	2.2
      Administration of the Performance Share Award Plan 	6
	 	2.3
      Delegation to Committee 	6
      
	 	2.4
      Record Keeping 	6
      
	 	2.5
      Determination of Participants and Participation 	6
      
	 	2.6
      Common Shares Issuable Under the Plan 	7
      
	 	2.7
      Settlement of Performance Share Awards 	7
      
	 	 	  
	ARTICLE
    3 PERFORMANCE SHARE AWARD PLAN 	7
      
	 	3.1
      Performance Share Award Plan 	7
      
	 	3.2
      Participants 	7
      
	 	3.3
      Performance Share Award Grant Letter 	8
	 	3.4
      Entitlement Date 	8
	 	3.5
      Payment of Dividends 	8
	 	3.6
      Death, Total Disability, Retirement or Termination Prior to Entitlement
      Date 	8
      
	 	3.7
      Change of Control 	9
	 	3.8
      Term of the Performance Share Award Plan 	9
	 	 	  
	ARTICLE
    4 WITHHOLDING TAXES 	9
      
	 	4.1
      Withholding Taxes 	9
      
	 	 	  
	ARTICLE
    5 GENERAL 	10
      
	 	5.1
      Amendment of Performance Share Award Plan 	10
	 	5.2
      Non-Assignable 	10
      
	 	5.3
      Rights as a Shareholder 	10
      
	 	5.4
      No Contract of Employment 	11
	 	5.5
      Adjustment in Number of Common Shares Subject to the Performance Share
      Award Plan 	11
	 	5.6
      Take-over Bid 	11
	 	5.7
      Recoupment Policy 	12
	 	5.8
      Presence of Share Ownership Policy 	12
	 	5.9
      Financial Assistance Prohibited 	12
	 	5.10
      No Representation or Warranty 	12
	 	5.11
      Compliance with Section 409A and Adjustments 	12
      
	 	5.12
      United States Income Tax Matters – Short-Term Deferrals 	12
	 	5.13
      Compliance with Applicable Law 	13
	 	5.14
      Interpretation 	13

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ARTICLE 1 
DEFINITIONS AND INTERPRETATION

1.1       
Definitions 

For purposes of this Plan, unless such word or term is
otherwise defined herein or the context in which such word or term is used
herein otherwise requires, the following words and terms with the initial letter
or letters thereof capitalized will have the following meanings: 

	A. 	
      “Achieved Performance Ratio” means, for any
      Performance Share Award, the percentage, ranging from 0% to 200% (or
      within such other range as the Committee may determine from time to time),
      quantifying the performance achievement realized as of an Entitlement Date
      determined in accordance with the performance conditions or measures and
      other terms outlined in the Performance Share Award grant letter
      evidencing such Performance Share Award;

	 	 	 
	B. 	
      “Board” means the Board of Directors of the
      Corporation;

	 	 	 
	C. 	
      “Change of Control” means the occurrence of any
      one of the following events:

	 	 	 
		(i) 	
      less than 50% of the Board being composed of Directors
      who were Continuing Directors;

	 	 	 
		(ii) 	
      any person, entity or group of persons or entities acting
      jointly or in concert (an “Acquiror”) acquires or acquires control
      (including without limitation, the right to vote or direct the voting) of
      Voting Securities of the Corporation which when added to the Voting
      Securities owned of record or beneficially by the Acquiror or which the
      Acquiror has the right to vote or in respect of which the Acquiror has the
      right to direct the voting, would entitle the Acquiror and/or associates
      and/or affiliates of the Acquiror (as such terms are defined in the
      Securities Act) to cast or direct the casting of 41% or more of the votes
      attached to all of the Corporation’s outstanding Voting Securities which
      may be cast to elect Directors of the Corporation or the successor
      corporation (regardless of whether a meeting has been called to elect
      Directors);

	 	 	 
		(iii) 	
      the shareholders of the Corporation approve all necessary
      resolutions required to permit any person to accomplish the result set
      forth in §(ii) above, even if the securities have not yet been issued to
      or transferred to that person;

	 	 	 
		(iv) 	
      the Corporation sells or otherwise transfers, including
      by way of the grant of a leasehold interest or joint venture interest (or
      one or more subsidiaries of the Corporation sells or otherwise transfers,
      including without limitation by way of the grant of a leasehold interest
      or joint venture interest) property or assets (A) aggregating more than
      50% of the consolidated assets (measured by either book value or fair
      market value) of the Corporation and its subsidiaries as at the end of the
      most recently completed financial year of the Corporation or (B) which
      during the most recently completed financial year of the Corporation
      generated, or during the then current financial year of the Corporation
      are expected to generate, more than 50% of the consolidated operating
      income or cash flow of the Corporation and its subsidiaries, to any other
      person or persons (other than one or more Affiliates of the Corporation),
      in such case the Change of Control will be deemed to occur on the date of
      transfer of the assets representing one dollar more than 50% of the
      consolidated assets in the case of clause (A) or 50% of the consolidated
      operating income or cash flow in the case of clause (B), as the case may
      be; or

	 	 	 
		(v) 	
      the shareholders of the Corporation approve all necessary
      resolutions required to permit any person to accomplish the result set
      forth in §(iv) above;

	D. 	
      “Code” means the United States Internal Revenue
      Code of 1986, as amended;

      

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	E. 	
      “Committee” means the Directors or if the
      Directors so determine in accordance with section 2.3 of the Plan, the
      committee of the Directors authorized to administer the Plan which
      includes any compensation committee of the Board;

	 	 	 
	F. 	
      “Common Shares” means the common shares in the
      capital of the Corporation, as adjusted in accordance with the provisions
      of Article 5 of this Plan;

	 	 	 
	G. 	
      “Continuing Director” means

	 	 	 
		(i) 	
      if in respect of the election of Directors, a Director
      who is nominated in the Management Proxy Circular as a Director,
  and

	 	 	 
		(ii) 	
      if after the election of Directors, a Director who was
      elected by the shareholders at the last occurring meeting of
      shareholders;

	H. 	
      “Corporation” means Tahoe Resources Inc., a
      corporation incorporated under the Business Corporations Act
      (British Columbia) and includes any successor corporation
    thereof;

	 	 
	I. 	
      “Designated Affiliate” means the affiliates (as
      such term is defined in the Securities Act) of the Corporation designated
      by the Committee for purposes of the Plan from time to time;

	 	 
	J. 	
      “Directors” means the board of directors of the
      Corporation from time to time;

	 	 
	K. 	
      “Eligible Contractor” means “Consultant” as
      that term is defined in the Section 2.22 of National Instrument 45-106 –
      Prospectus and Registration Exemptions, as may be amended or replaced from
      time to time;

	 	 
	L. 	
      “Eligible Employees” means employees, including
      officers, and including both full-time and part-time employees, of the
      Corporation or any Designated Affiliate;

	 	 
	M. 	
      “Entitlement Date” means the date as determined by
      the Committee in its sole discretion in accordance with the
Plan;

	 	 
	N. 	
      “Grant Date” means the date that a Performance
      Share Award is granted to a Participant under this Plan, as evidenced by
      the register or registers maintained by the Corporation for Performance
      Share Awards;

	 	 
	O. 	
      “Insider” means an “Insider” as defined in the TSX
      Policies, other than a person who is an insider solely by virtue of being
      a director or senior officer of a subsidiary of the Corporation;

	 	 
	P. 	
      “Market Price” means the volume weighted average
      trading price of the Common Shares on the TSX for the 30 trading days
      ending on the last trading date immediately before the date on which the
      Market Price is determined. In the event that the Common Shares are not
      then listed and posted for trading on the TSX, the Market Price will be
      determined with reference to the price on any other Stock Exchange. In the
      event that the Common Shares are not then listed and posted for trading on
      any Stock Exchange, the Market Price will be the fair market value of such
      Common Shares as determined by the Board in its sole discretion;

	 	 
	Q. 	
      “Participant” for the Plan means each Eligible
      Employee and Eligible Contractor to whom Performance Share Awards are
      granted;

	 	 
	R. 	
      “Performance Share Award” means a unit credited by
      means of an entry on the books of the Corporation to a Participant,
      representing the right to receive as of the Participant’s Entitlement Date
      such number of Common Shares from treasury as determined in
      accordance with section 2.7 and Article 3, and if applicable, multiplied
  by, the Achieved Performance Ratio;

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	S. 	
      “Plan” means the Corporation’s Performance Share
      Award Plan, as same may be amended from time to time;

	 	 
	T. 	
      “Retirement” in respect of a Participant means the
      Participant ceasing to be an Eligible Employee after attaining a
      stipulated age in accordance with the Corporation’s normal retirement
      policy or earlier with the Corporation’s consent;

	 	 
	U. 	
      “Required Shareholder Approval” means the approval
      of this Plan by the shareholders of the Corporation, as may be required by
      the TSX or any other Stock Exchange on which the Common Shares are listed,
      as a plan allowing for the issuance of Common Shares from treasury to
      satisfy Performance Share Awards on an applicable Entitlement
  Date;

	 	 
	V. 	
      “Section 409A” means Section 409A of the Code and
      any applicable regulatory guidance issued thereunder;

	 	 
	W. 	
      “Securities Act” means the Securities Act
      (British Columbia) or its successor, as amended from time to
    time;

	 	 
	X. 	
      “Share Plan” means the Corporation’s Share Option
      and Incentive Share Plan, as amended;

	 	 
	Y. 	
      “Stock Exchange” means the TSX, the NYSE or any
      other stock exchange on which the Common Shares are listed for trading at
      the relevant time;

	 	 
	Z. 	
      “Subsidiary” has the meaning set out in the
      Business Corporations Act (British Columbia);

	 	 
	AA. 	
      “Termination” means: (i) in the case of an
      Eligible Employee, the termination of the employment of the Eligible
      Employee with or without cause by the Corporation or a Designated
      Affiliate or the cessation of employment of the Eligible Employee with the
      Corporation or a Designated Affiliate as a result of the resignation or
      otherwise, other than the Retirement, of the Eligible Employee; and (ii)
      in the case of an Eligible Contractor, the termination of the services of
      the Eligible Contractor by the Corporation or a Designated Affiliate; for
      greater certainty, in each case, other than for death or disability of a
      Participant;

	 	 
	BB. 	
      “Triggering Event” means a termination of an
      Eligible Employee’s employment for good reason as defined under Section
      409A, which will be any one of the following events which occurs without
      the express agreement in writing of the Eligible
  Employee:

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(a)        a
  material diminution in the authority, duties, or responsibilities of the
  Eligible Employee as in effect immediately prior to the Change of Control; 

(b)        a
material diminution in the Eligible Employee’s base salary; 

(c)        a
material diminution in the authority, duties or responsibilities of the
individual to whom the Eligible Employee is required to report, including a
requirement that the Eligible Employee no longer report to such individual; 

(d)        a
material diminution in the budget over which the Eligible Employee retains
authority; 

(e)        a
material change in the geographic location at which the Eligible Employee is
regularly required immediately prior to the Change of Control to carry out the
terms of his or her employment with the Corporation; or 

(f)        any
other action or inaction by the Corporation that constitutes a material breach
of the terms of the Eligible Employee’s employment with the Corporation; 

	CC. 	
      “TSX” means the Toronto Stock Exchange;

	 	 
	DD. 	
      “TSX Policies” means the policies included in the
      TSX Company Manual and “TSX Policy” means any one of
them;

	 	 
	EE. 	
      “US Participants” means Participants who are
      liable to taxation under the provisions of the Code in respect of amounts
      payable under this Plan;

	 	 
	FF. 	
      “Voting Securities” means Common Shares and any
      other shares entitled to vote for the election of Directors and will
      include any securities, whether or not issued by the Corporation, which
      are not shares entitled to vote for the election of Directors but are
      convertible into or exchangeable for shares which are entitled to vote for
      the election of Directors including any options or rights to purchase such
      shares or securities

1.2       
Headings 

The headings of all articles, sections, and paragraphs in the
Plan are inserted for convenience of reference only and will not affect the
construction or interpretation of the Plan. 

1.3       
Context, Construction 

Whenever the singular or masculine are used in the Plan, the
same will be construed as being the plural or feminine or neuter or vice versa
where the context so requires. 

1.4       
References to this Performance Share Award Plan 

The words “hereto”, “herein”, “hereby”, “hereunder”, “hereof”
and similar expressions mean or refer to the Plan as a whole and not to any
particular article, section, paragraph or other part hereof. 

1.5       
Canadian Funds 

Unless otherwise specifically provided, all references to
dollar amounts in the Plan are references to lawful money of Canada. 

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ARTICLE 2 
PURPOSE AND ADMINISTRATION OF THE
PERFORMANCE SHARE AWARD PLAN 

2.1       
Purpose of the Performance Share Award Plan

This Plan provides for the granting of Performance Share Awards
as a discretionary award for services rendered, and the settlement of such
Performance Share Awards through the issuance of Common Shares from treasury,
for the purpose of advancing the interests of the Corporation, its Designated
Affiliates and its shareholders through the motivation, attraction and retention
of employees, officers and Eligible Contractors and the alignment of their
interest with the interest of the Corporation’s shareholders. 

2.2       
Administration of the Performance Share Award Plan 

The Plan will be administered by the Committee and the
Committee will have full authority to administer the Plan including the
authority to interpret and construe any provision of the Plan and to adopt,
amend and rescind such rules and regulations for administering the Plan as the
Committee may deem necessary in order to comply with the requirements of the
Plan. All actions taken and all interpretations and determinations made by the
Committee in good faith will be final and conclusive and will be binding on the
Participants and the Corporation. No member 

of the Committee will be personally liable for any action taken
or determination or interpretation made in good faith in connection with the
Plan and all members of the Committee will, in addition to their rights as
Directors, be fully protected, indemnified and held harmless by the Corporation
with respect to any such action taken or determination or interpretation made.
The appropriate officers of the Corporation are hereby authorized and empowered
to do all things and execute and deliver all instruments, undertakings and
applications and writings as they, in their absolute discretion, consider
necessary for the implementation of the Plan and of the rules and regulations
established for administering the Plan. All costs incurred in connection with
the Plan will be for the account of the Corporation. 

2.3       
Delegation to Committee 

All of the powers exercisable hereunder by the Directors may,
to the extent permitted by applicable law and as determined by resolution of the
Directors, be exercised by a committee of the Directors comprised of not less
than three Directors, including any compensation committee of the Board. 

2.4       
Record Keeping

The Corporation will maintain a register in which will be
recorded 

	 	(a) 	
      the name and address of each Participant in the Plan,
      and

	 	 	 
	 	(b) 	
      the number of Performance Share Awards granted to each
      Participant under the Plan.

2.5       
Determination of Participants and Participation 

The Committee will from time to time determine the Participants
who may participate in the Plan. The Committee will from time to time determine
the Participants to whom Performance Share Awards will be granted and the
provisions, performance conditions and restrictions with respect to such
grant(s), all such determinations to be made in accordance with the terms and
conditions of the Plan, and the Committee may take into consideration all
factors which the Committee, without limitation and in its sole discretion,
deems appropriate and relevant.

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2.6       
Common Shares Issuable Under the Plan 

The Common Shares issuable from treasury under the Plan,
subject to adjustment pursuant to section 5.5, will be taken from the Common
Shares reserved and available for issuance under the Share Plan. 

The number of Common Shares reserved for issuance under the
Plan will be reduced by that number of Performance Share Awards which are issued
in accordance with the provisions of the Plan. Any Common Shares subject to a
Performance Share Award which have been granted under the Plan and which have
been cancelled or terminated in accordance with the terms of the Plan will again
be available for issuance. 

The maximum aggregate number of Common Shares: 

	 	(a) 	
      which may be reserved for issuance to any one Participant
      under the Plan together with all of the Corporation’s other previously
      established or proposed share compensation arrangements will not exceed 5%
      of the issued and outstanding Common Shares on the grant date (on a non-
      diluted basis);

	 	 	 
	 	(b) 	
      which may be issuable to Insiders under the Plan together
      with all of the Corporation’s other previously established or proposed
      share compensation arrangements will not exceed 10% of the Common Shares
      issued and outstanding on the grant date (on a non-diluted basis);
    and

	 	 	 
	 	(c) 	
      which may be issued to Insiders under the Plan together
      with all of the Corporation’s other previously established or proposed
      share compensation arrangements within a twelve-month period will not
      exceed 10% of the issued and outstanding Common Shares at the time of
      issuance (on a non-diluted basis).

2.7       
Settlement of Performance Share Awards 

The Corporation will satisfy its payment obligation, net of any
applicable taxes and other source deductions required by law to be withheld by
the Corporation (or any of its affiliates), or as it deems necessary or
desirable to enable it to meet related remittance obligations, for the
settlement of Performance Share Awards by the issuance of Common Shares to the
Participant in an amount equal to the number of Performance Share Awards being
settled, multiplied by the Achieved Performance Ratio. 

ARTICLE 3 
PERFORMANCE SHARE AWARD PLAN

3.1       
Performance Share Award Plan 

The Plan is hereby established for the Participants. 

3.2       
Participants 

Subject to section 2.6 the Committee will have the right, in
its sole and absolute discretion, to grant Performance Share Awards to any
Participant, subject to the Plan and with such provisions, performance
conditions and restrictions as the Committee may determine. The number of
Performance Share Awards awarded will be credited to the Participant’s account,
effective as of the Grant Date. Each Performance Share Award vests on its
Entitlement Date, as determined by the Committee. 

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3.3       
Performance Share Award Grant Letter 

Each Performance Share Award granted under the Plan will be
evidenced by a grant letter to the Participant from the Corporation. Such
Performance Share Award grant letter will be subject to all applicable terms and
conditions of the Plan and may be subject to any other terms and conditions
which are not inconsistent with the Plan and which the Committee deems
appropriate for inclusion in a Performance Share Award grant letter. The
provisions of the various Performance Share Award grant letters issued under the
Plan need not be identical. To the extent that there is any inconsistency
between the Plan and the Performance Share Award grant letter or any other
communications, the Plan will prevail. 

3.4       
Entitlement Date 

Upon the grant of Performance Share Awards to a Participant,
the Committee will determine the Entitlement Date applicable to such Performance
Share Awards. For the avoidance of doubt, except as otherwise set forth in
Article 3, a Participant will have no right or entitlement whatsoever to receive
Common Shares until the Entitlement Date, with the Common Shares being issued as
soon as reasonably practicable after the Entitlement Date or, if applicable, any
Early Measurement Date. On the terms of this Plan including this Article 3, a
Performance Share Award granted to a Participant will entitle the Participant,
subject to the satisfaction of the conditions, performance conditions or
measures, restrictions or limitations imposed under this Plan or the applicable
Performance Share Award grant letter, to be entitled to receive as of the
Participant’s Entitlement Date a payment in Common Shares as contemplated in
section 2.7 and as set forth in the applicable Performance Share Award grant
letter as provided for in section 3.3. 

3.5       
Payment of Dividends 

The Committee may elect, in its sole and absolute discretion,
to credit each Participant with additional Performance Share Awards as a bonus
in the event any dividend is paid on Common Shares. In such case, the number of
additional Performance Share Awards will be equal to the aggregate amount of
dividends that would have been paid to the Participant if the Performance Share
Awards in the Participant’s account had been Common Shares divided by the Market
Price of a Common Share on the date on which dividends were paid by the
Corporation. 

The additional Performance Share Awards will vest on the
Participant’s Entitlement Date for the particular Performance Share Award (and
will be subject to the same terms) to which the additional Performance Share
Awards relate. 

3.6       
Death, Total Disability, Retirement or Termination Prior to Entitlement
Date 

In the event of the (i) death, (ii) total disability, (iii)
Retirement, or (iv) Termination of a Participant prior to the Entitlement Date,
any Performance Share Awards held by the Participant will immediately terminate,
be forfeited and be of no further force or effect, provided that the Committee
has the absolute discretion to waive all or part of such termination and
forfeiture; however,

	 	(a) 	
      where the Committee exercises its discretion pursuant to
      this section 3.6 to accelerate the vesting of any Performance Share Awards
      to a date earlier than the Entitlement Date for such Performance Share
      Awards (the “Early Measurement Date”), such Performance Share
      Awards outstanding and held by the applicable Participant will vest in an
      amount equal to the product obtained by multiplying (i) the total number
      of Common Shares otherwise issuable pursuant to such Performance Share
      Awards and (ii) the Applicable Pro-Ration Factor (as defined in section
      3.7), and

	 	 	 
	 	(b) 	
      the Committee may not exercise its discretion in such a
      manner which would prevent compliance with the deadline set forth in
      section 1.409A-1(b)(4)(i) of the United States Treasury Regulations with
      respect to short-term deferrals of compensation.

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3.7       
Change of Control 

In the event of a Change of Control and if, at the time
of the Change of Control: 

	 	(a) 	
      the Participant is an Eligible Employee and, within 12
      months of such Change of Control, the Corporation terminates the
      employment or services of said Participant/Eligible Employee for any
      reason other than just cause or any Trigger Event occurs (the “Event of
      Termination”), then on the date of such Event of Termination (the
      “Early Measurement Date”), the Performance Share Awards outstanding
      and held by the Participant will immediately vest in an amount equal to
      the product obtained by multiplying (i) the total number of Common Shares
      otherwise issuable pursuant to such Performance Share Award and (ii) the
      Applicable Pro-Ration Factor. “Applicable Pro-Ration Factor” will
      mean the quotient obtained by dividing the number of days that have
      elapsed since the applicable Grant Date for a Performance Share Award
      through and including the Early Measurement Date by the total number of
      days between the Grant Date and the Entitlement Date; or

	 	 	 
	 	(b) 	
      the Participant is not an Eligible Employee of the
      Corporation, then all Performance Share Awards outstanding and held by the
      Participant will immediately vest.

In the event the Participant’s Performance Share Awards
immediately vest in the circumstances contemplated in this section 3.7, the
Achieved Performance Ratio will be calculated up to the Early Measurement Date
assuming a minimum 100% performance achievement during such measurement period.

3.8       
Term of the Performance Share Award Plan 

The Plan will be subject to the Required Shareholder approval
and any required Stock Exchange approvals. The Plan will become effective on the
later of the dates on which the Required Shareholder Approval and any required
Stock Exchange approvals are obtained. The Plan will remain in effect until it
is terminated by the Board. 

ARTICLE 4 
WITHHOLDING TAXES 

4.1       
Withholding Taxes 

The Corporation or any Designated Affiliate may take such steps
as are considered necessary or appropriate for the withholding of any taxes
which the Corporation or any Designated Affiliate of the Corporation is required
by any law or regulation of any governmental authority whatsoever to withhold in
connection with any Common Share including, without limiting the generality of
the foregoing, the withholding of all or any portion of any payment or the
withholding of the issue of Common Shares to be issued under the Plan, until
such time as the Participant has paid the Corporation or any Designated
Affiliate of the Corporation for any amount which the Corporation or Designated
Affiliate of the Corporation is required to withhold with respect to such taxes
or other amounts.

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Without limitation to the foregoing, the Committee may adopt
administrative rules under the Plan which provide for the sale of Common Shares
(or a portion thereof) in the market upon the issuance of such Common Shares
under the provisions of the Plan to satisfy withholding obligations under the
Plan. 

ARTICLE 5 
GENERAL 

5.1       
Amendment of Performance Share Award Plan 

The Board may from time to time in the absolute discretion of
the Board amend, modify and change the provisions of the Plan (including any
grant letters) without shareholder approval, including, without limitation,
amendments of a housekeeping nature, provided that any amendments, modifications
or changes to the provisions of the Plan (including any grant letters) which
would 

	 	(a) 	
      materially increase the benefits under the
Plan,

	 	 	 
	 	(b) 	
      other than as set out in section 3.6 and section 3.7,
      change the Entitlement Date of any Performance Share Awards,

	 	 	 
	 	(c) 	
      modify section 5.2,

	 	 	 
	 	(d) 	
      increase the number of Common Shares which may be issued
      pursuant to the Plan, other than by virtue of section 5.5 and section 5.6
      of the Plan,

	 	 	 
	 	(e) 	
      materially modify the requirements as to eligibility for
      participation in the Plan, or

	 	 	 
	 	(f) 	
      make any amendment to this section 5.1 so as to increase
      the ability of the Board to amend the Plan without shareholder
      approval,

will only be effective upon such amendment, modification or
change being approved by the shareholders of the Corporation, if
required, by the TSX and any other Stock Exchange or regulatory authority having
jurisdiction over the securities of the Corporation. Any amendment, modification
or change of any provision of the Plan will be subject to approval, if required,
by any regulatory authority having jurisdiction over the securities of the
Corporation. Notwithstanding the foregoing, the Board will not amend the Plan to
permit Performance Share Awards to be settled in cash. 

The Board may discontinue the Plan at any time without first
obtaining shareholder approval, provided that, without the consent of a
Participant, such discontinuance may not in any manner adversely affect the
Participant’s rights under any Performance Share Award granted under the Plan.

Notwithstanding the foregoing, the Corporation will obtain
requisite Stock Exchange and shareholder approval in respect of amendments to
this Plan, to the extent such approvals are required by any applicable laws or
regulations. 

5.2       
Non-Assignable

Except as otherwise may be expressly provided for under this
Plan or pursuant to a will or by the laws of descent and distribution, no
Performance Share Award and no other right or interest of a Participant is
assignable or transferable. 

5.3       
Rights as a Shareholder 

No holder of any Performance Share Awards will have any rights
as a shareholder of the Corporation prior to the Entitlement Date. Subject to
section 3.5, no holder of any Performance Share Awards will be entitled to
receive, and no adjustment will be made for, any dividends, distributions or any
other rights declared for shareholders of the Corporation for which the record
date is prior to the Entitlement Date. The Corporation will not contribute any
amounts to a third party or otherwise set aside any amounts to fund its
obligations under this Plan.

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5.4       
No Contract of Employment 

Nothing contained in the Plan will confer or be deemed to
confer upon any Participant the right to continue in the employment of, or to
provide services to, the Corporation or any Designated Affiliate nor interfere
or be deemed to interfere in any way with any right of the Corporation or any
Designated Affiliate to discharge any Participant at any time for any reason
whatsoever, with or without cause. Participation in the Plan by a Participant
will be voluntary. 

5.5       
Adjustment in Number of Common Shares Subject to the Performance Share
Award Plan 

In the event there is any change in the Common Shares, whether
by reason of a stock dividend, consolidation, subdivision, reclassification or
otherwise, an appropriate adjustment will be made by the Committee in: 

	 	(a) 	
      the number of Common Shares available under the Plan;
      and

	 	 	 
	 	(b) 	
      the number of Common Shares subject to any Performance
      Share Awards.

If the foregoing adjustment will result in a fractional Common
Share, the fraction will be disregarded. All such adjustments will be
conclusive, final and binding for all purposes of the Plan. 

5.6       
Take-over Bid 

In the event that the Corporation becomes the subject of a
take-over bid pursuant to which 100% of the issued and outstanding Common Shares
are acquired by the offeror either directly or as a result of the compulsory
acquisition provisions of the incorporating statute, and where consideration is
paid in whole or in part in equity securities of the offeror, the Committee may
send notice to all holders of Performance Share Awards requiring them to
surrender their Performance Share Awards within ten days of the mailing of such
notice, and the holders of Performance Share Awards will be deemed to have
surrendered such Performance Share Awards on the tenth day after the mailing of
such notice without further formality, provided that: 

	 	(a) 	
      the offeror delivers with such notice an irrevocable and
      unconditional offer to grant replacement performance share awards to the
      holders of Performance Share Awards on the equity securities offered as
      consideration;

	 	 	 
	 	(b) 	
      the Committee has determined, in good faith, that such
      replacement performance share awards have substantially the same economic
      value as the Performance Share Awards being surrendered;
  and

	 	(c) 	
      the surrender of Performance Share Awards and the
      granting of replacement performance share awards can be effected on a
      tax-deferred basis under the Income Tax Act (Canada) and would not
      cause U.S. Participants to incur adverse tax consequences under Section
      409A.

	PERFORMANCE SHARE
      AWARD PLAN 

 

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5.7       
Recoupment Policy 

All Performance Share Awards will be subject to the
Corporation’s incentive compensation recoupment policy. 

5.8       
Presence of Share Ownership Policy 

The Corporation has a share ownership policy in place which
applies to specific executive officers of the Corporation (including the Chief
Executive Officer) and states that, while the executive officer is not in
compliance with his/her ownership requirement under the share ownership policy,
the executive officer must retain an amount equal to 50% of his/her net Common
Shares (“Net Shares”) received as a result of the exercise of share
options or the vesting of share awards, including any Performance Share Awards,
granted to the executive officer by the Corporation. “Net Shares” are those
Common Shares which remain after Common Shares are sold to pay any applicable
exercise price for share options and to satisfy any tax obligations arising in
connection with the exercise of share options or the vesting of share awards
(including Performance Share Awards), as the case may be. 

5.9       
Financial Assistance Prohibited 

The Corporation is prohibited from providing financial
assistance in the form of a loan or otherwise to Participants under this Plan
for the purpose of settlement of equity awards under this Plan. 

5.10      No
Representation or Warranty 

The Corporation makes no representation or warranty as to the
future market value of any Common Shares issued in accordance with the
provisions of the Plan. 

5.11      Compliance
with Section 409A and Adjustments 

Notwithstanding any provision of the Plan to the contrary, it
is intended that with respect to any US Participant, such US Participant's
participation in the Plan will be exempt from Section 409A and in a manner which
does not subject the US Participant's interests in the Plan to accelerated or
additional tax under Section 409A (and all provisions of the Plan will be
construed and interpreted in a manner consistent with the requirements for
avoiding taxes or penalties under Section 409A). If any grant to a US
Participant or vesting, dividend or distribution hereunder could cause the
application of accelerated or additional tax under Section 409A, such grant,
vesting, dividend or distribution will be deferred if and to the extent deferral
will make such grant, vesting, dividend or distribution compliant with Section
409A; otherwise such grant, vesting, dividend or distribution will be
restructured, to the extent possible, in a manner determined by the Board that
does not cause such an accelerated or additional tax. Each US Participant is
solely responsible and liable for the satisfaction of all taxes and penalties
that may be imposed on or for the account of such US Participant in connection
with the Plan (including any taxes and penalties under Section 409A), and
neither the Corporation nor any of its affiliates will have any obligation to
indemnify or otherwise hold such US Participant (or any beneficiary) harmless
from any or all of such taxes or penalties. Notwithstanding the Plan or any
provision of the Performance Share Award grant letter to the contrary, in
connection with any adjustment to the Performance Share Awards, the number of
Common Shares deliverable on the vesting of Performance Share Awards held by a
US Participant will be adjusted in a manner intended to keep the Performance
Share Awards exempt from Section 409A. 

5.12      United States
Income Tax Matters – Short-Term Deferrals 

For the avoidance of doubt, all payments under this Plan to
individuals subject to United States income tax will be made no later than the
deadline set forth in section 1.409A -1(b)(4)(i) of the United States Treasury
Regulations with respect to short-term deferrals of compensation. 

	PERFORMANCE SHARE
      AWARD PLAN 

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5.13      Compliance
with Applicable Law 

If any provision of the Plan or any Performance Share Award
contravenes any law or any order, policy, by-law or regulation of any regulatory
body having jurisdiction, then such provision will be deemed to be amended to
the extent necessary to bring such provision into compliance therewith. 

5.14    
 Interpretation 

This Plan will be governed by and construed in accordance with
the laws of the Province of British Columbia. 

	PERFORMANCE SHARE
      AWARD PLAN

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