Exhibit 10.1


 


GSI TECHNOLOGY, INC.


2022 VARIABLE COMPENSATION PLAN


(Effective as of April 1, 2021)


 


1.           Introduction. The Company hereby adopts the Plan, effective as of April 1, 2021. The purpose of the Plan is to encourage performance
and achieve retention of a select group of executive employees of GSI Technology, Inc. This document constitutes the written instrument
under which the Plan is maintained.


 


2.           Definitions.


 


“Cause” means (i) conviction of a felony
or a crime of moral turpitude; (ii) misconduct that results in harm to the Company; (iii) material failure to perform assigned duties;
or (iv) willful disregard of lawful instructions from the chief executive officer of the Company or the Board of Directors relating
to the business of the Company or any of its affiliates.


 


“Code” means the Internal Revenue Code
of 1986, as amended, and the regulations issued with respect thereof.


 


“Committee” means the Compensation
Committee of the Company’s Board of Directors.


 


“Company” means GSI Technology, Inc.,
a Delaware corporation.


 


“Disability” means that a Participant
(i) is unable to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment which
can be expected to result in death or can be expected to last for a continuous period of not less than 12 months, or (ii) is, by reason
of any medically determinable physical or mental impairment which can be expected to result in death or can be expected to last for a
continuous period of not less than 12 months, receiving income replacement benefits for a period of not less than 3 months under an accident
and health plan covering employees of the Participant’s employer.


 


“Eligible Employee” means each employee
who is eligible for the Plan as designated by the Committee as set forth in approved minutes.


 


“Normal Retirement Age” means age sixty
(60).


 


“Participant” means each Eligible Employee
who is designated from time to time by the Committee in writing.


 


“Plan” means the GSI Technology, Inc.
2022 Variable Compensation Plan, as set forth in this document and as hereafter amended.


 


“Retirement” means the termination
of employment after Normal Retirement Age.


 



    1


     


    

 





3.           Variable Compensation Award.


 


(a)              Variable
Compensation Award and Calculation of Payable Amount. Each Participant will receive an award, entitling the Participant to earn
variable compensation, the payment of which will be based upon (i) the achievement of performance criteria based on net revenues
including a target for Associative Processing Unit (APU) net revenues and a Rad tolerant net revenue target determined in accordance
with US GAAP, with the incentive compensation bonus pool increased or decreased based on achieving or missing APU and Rad tolerant
net revenue targets and (ii) continued employment by the Participant through the vesting dates set forth in Section 4
hereof (the “Variable Compensation Award”). The Committee shall designate in writing the amount payable under the
Variable Compensation Award and, if applicable, the percentage of the amount payable under the Variable Compensation Award that is
allocable to each of the criteria. Notwithstanding the foregoing, the maximum amount payable under a Variable Compensation Award
granted to any Participant shall not exceed two times the Participant’s target Variable Compensation Award for 2022, unless
the Committee, in its sole discretion, decides to permit a greater amount with respect to such Participant based on the performance
and condition of the Company’s business. Also, at any time prior to April 1, 2022, the Committee or the CEO, in his, her, or
its sole discretion, may reduce the amount payable under any Participant’s Variable Compensation Award. The amount of the
Variable Compensation Award that may become payable to the extent it becomes vested in accordance with the schedule set forth in
Section 4 hereof shall be calculated as soon as reasonably practicable following April 1, 2022 based on the extent to which the
performance criteria set forth in this Section 3(a) have been achieved (the “Award Payment Amount”).


 


4.          Payment of Variable Compensation Award.


 


(a)              Vesting,
Timing and Form of Payment. Subject to Sections 4(b), 4(c), 4(d) and 7, each Participant’s Award Payment Amount shall vest and
be paid as follows:


 


(i)             Sixty percent (60%) of the Participant’s Award Payment Amount shall vest and be payable to the Participant on the last business
day in April 2022; and


 


(ii)            Twenty
percent (20%) of the Participant’s Award Payment Amount (i.e. fifty percent (50%) of the Award Payment Amount then remaining) shall
vest and be payable to the Participant on the last business day in April 2023; and


 


(iii)           Twenty
percent (20%) of the Participant’s Award Payment Amount (i.e. one-hundred percent (100%) of the Award Payment Amount then remaining)
shall vest and be payable to the Participant on the last business day in April 2024.


 


(b)              Distribution
in the Event of Retirement, Termination as a result of Disability or without Cause. If a Participant terminates employment because of
Retirement or Disability, or the Company terminates a Participant’s employment without Cause, the Participant shall be entitled
to payment of all of his or her Award Payment Amount according to the schedule in Section 4(a), provided that if termination under
these conditions occurs prior to April 1, 2022, the amount of the Variable Compensation Award payable will be the Award Payment Amount
calculated pursuant to Section 3(a), multiplied by the number of days employee was employed in Fiscal 2022 by the Company and then divided
by 365 days, and all remaining amounts payable under Variable Compensation Award for 2022 shall be forfeited.


 



    2


     


    

 





(c)              Forfeiture.
If the Company terminates a Participant’s employment for Cause or if the Participant’s employment is terminated for any reason
other than as a result of Retirement or Disability, he or she shall forfeit all or any portion of his or her entire Award Payment Amount
for 2022 (as set forth in Section 3(a)) which is not yet vested and payable under the schedule set forth in Section 4(a) as of the
date of termination.


 


(d)              Timing
of Distribution to a Beneficiary. If a Participant dies while still employed by the Company or after termination due to Retirement, Disability,
or termination by the Company without Cause but before receiving a distribution of all of his or her Award Payment Amount according to
the schedule in Section 4(a), then the vesting of the Participant’s Award Payment Amount shall be fully accelerated such that one-hundred
percent (100%) of the Award Payment Amount, as calculated pursuant to Section 4(b) hereof (with the amount prorated to the date of death
in the event death occurs prior to April 1, 2022), will be distributed to his or her beneficiary as a lump sum distribution on the April
30 following the Participant’s death.


 


(e)              
Beneficiary Designation. Each Participant must designate a beneficiary to receive a distribution of his or her Variable Compensation
Award if the Participant dies before such amount is fully distributed to him or her. To be effective, a beneficiary designation must be
signed, dated and delivered to the Committee. In the absence of a valid or effective beneficiary designation, the Participant’s
surviving spouse will be his or her beneficiary or, if there is no surviving spouse, the Participant’s estate will be his or her
beneficiary. If a married Participant designates anyone other than his or her spouse as his or her beneficiary, such designation will
be void unless it is signed and dated by the Participant’s spouse.


 


5.           Withholding.
The Company will withhold from any Plan distribution all required federal, state, local and other taxes and any other payroll deductions
that may be required.


 


6.           Administration.
The Committee has the full and exclusive discretion to interpret and administer the Plan. All actions, interpretations and decisions
of the Committee are conclusive and binding on all persons, and will be given the maximum possible deference allowed by law. Subject
to the provisions of the Plan, the Committee shall have full authority to select, in its sole discretion the Participants to whom Variable
Compensation Awards will be granted.


 


7.           Amendment
or Termination. Through March 31, 2022, the Committee, in its sole and unlimited discretion, may amend or terminate the Plan at any time,
without prior notice to any Participant. After April 1, 2022, the Committee may amend or terminate the Plan provided that any such amendment
does not reduce or increase any benefit to which a Participant has accrued and is otherwise entitled to under the terms of the Plan,
nor accelerate the timing of any payment under the Plan. Notwithstanding the foregoing to the contrary, the Company reserves the right
to the extent it deems necessary or advisable, in its sole discretion, to unilaterally alter or modify the Plan and any Variable Compensation
Awards made thereunder to ensure that the Plan and Variable Compensation Awards provided to Participants who are U.S. taxpayers are made
in such a manner that either qualify for exemption from or comply with Code Section 409A; provided, however, that the Company makes no
representations that the Plan or any Variable Compensation Awards made thereunder will be exempt from or comply with Code Section 409A
and makes no undertaking to preclude Code Section 409A from applying to the Plan or any Variable Compensation Awards made thereunder.
The Plan shall automatically terminate on the date when no Participant (or beneficiary) has any right to or expectation of payment of
further benefits under the Plan.


 



    3


     


    

 





8.           Source
of Payments. All payments under the Plan will be paid in cash from the general funds of the Company. No separate fund will be established
under the Plan, and the Plan will have no assets. Any right of any person to receive any payment under the Plan is no greater than the
right of any other general unsecured creditor of the Company. The Plan shall be binding upon the Company’s successors and assigns.


 


9.           Inalienability. A Participant’s rights to benefits under the Plan are not subject in any manner to anticipation, alienation,
sale, transfer, assignment, pledge, encumbrance, attachment, or garnishment by creditors of the Participant or the Participant’s
beneficiary.


 


10.         Applicable
Law. The provisions of the Plan will be construed, administered and enforced in accordance with the laws of the State of California without
reference to its principles of conflicts-of-laws.


 


11.         Severability.
If any provision of the Plan is held invalid or unenforceable, its invalidity or unenforceability will not affect any other provision
of the Plan, and the Plan will be construed and enforced as if such provision had not been included.


 


12.         No Right of Continued Employment. THE PLAN DOES NOT GIVE ANY ELIGIBLE EMPLOYEE OR PARTICIPANT THE RIGHT TO BE RETAINED AS AN EMPLOYEE.
SUBJECT TO THE TERMS OF ANY WRITTEN EMPLOYMENT AGREEMENT TO THE CONTRARY, THE COMPANY SHALL HAVE THE RIGHT TO TERMINATE OR CHANGE THE
TERMS OF EMPLOYMENT OF AN ELIGIBLE EMPLOYEE OR A PARTICIPANT AT ANY TIME AND FOR ANY REASON WHATSOEVER, WITH OR WITHOUT CAUSE.


 


13.         Bindings on Successor. The liabilities and obligations of the Company under the Plan will be binding upon any successor corporation
or entity which succeeds to all or substantially all of the assets and business of the Company by merger or other transaction.


 


IN WITNESS WHEREOF, GSI Technology, Inc., by its duly authorized officer,
has executed the Plan on the date indicated below.


 


GSI TECHNOLOGY, INC.


 


	/s/ Lee-Lean Shu	 
	Name: Lee-Lean Shu	 
	Title: Chief Executive Officer	 
	 	 
	Date: 6/1/2021	 



  



    4