EX-10.16





 Exhibit 10.16 

CONFLUENT, INC. 
 CASH
INCENTIVE BONUS PLAN 
 (Adopted April 30, 2021, effective on Initial Public Offering) 

1. Purposes of the Plan. The Plan is intended to increase stockholder value and the success of Confluent by motivating Employees
to (a) perform to the best of their abilities and (b) achieve Confluent’s objectives. 
 2. Definitions. 

(a) “Affiliate” means any corporation or other entity (including, but not limited to, partnerships and joint
ventures) controlled by Confluent. 
 (b) “Actual Award” means as to any Performance Period, the actual award (if
any) payable to a Participant for the Performance Period, subject to the Committee’s authority under Section 3(c) to modify the award. 

(c) “Board” means the Board of Directors of Confluent. 

(d) “Code” means the Internal Revenue Code of 1986, as amended. Reference to a specific section of the Code or regulation
thereunder will include such section or regulation, any valid regulation promulgated thereunder, and any comparable provision of any future legislation or regulation amending, supplementing or superseding such section or regulation. 

(e) “Committee” means any committee appointed by the Board (pursuant to Section 5) to administer the Plan. 

(f) “Confluent” means Confluent, Inc. or any successor thereto. 

(g) “Employee” means any executive, officer, or key employee of Confluent or of an Affiliate, whether such individual is so
employed at the time the Plan is adopted or becomes so employed subsequent to the adoption of the Plan. 
 (h)
“Participant” means as to any Performance Period, an Employee who has been selected by the Committee for participation in the Plan for that Performance Period. 

(i) “Performance Period” means the period of time for the measurement of the performance criteria that must be met to receive
an Actual Award, as determined by the Committee in its sole discretion. A Performance Period may be divided into one or more shorter periods if, for example, but not by way of limitation, the Committee desires to measure some performance criteria
over 12 months and other criteria over three months. 
 (j) “Plan” means this Confluent, Inc. Cash Incentive Bonus Plan
(including any appendix attached hereto) and as hereafter amended from time to time. 












 (k) “Target Award” means the target award, at 100% target level of
achievement, payable under the Plan to a Participant for the Performance Period, as determined by the Committee in accordance with Section 3(b). 

3. Selection of Participants and Determination of Awards. 

(a) Selection of Participants. The Committee, in its sole discretion, will select the Employees or categories of employees who
will be Participants for any Performance Period. Participation in the Plan is in the sole discretion of the Committee, on a Performance Period by Performance Period basis. Accordingly, an Employee who is a Participant for a given Performance Period
in no way is guaranteed or assured of being selected for participation in any subsequent Performance Period or Periods. 

(b) Determination of Target Awards. The Committee, in its sole discretion, will establish a Target Award for each Participant,
which may be a percentage of a Participant’s annual base salary as of the beginning or end of the Performance Period or a fixed dollar amount. Confluent may require that a Participant sign an agreement in writing as to the terms of such
Participant’s participation in the Plan. 
 (c) Discretion to Modify Awards. Notwithstanding any contrary provision of the
Plan, the Committee may, in its sole discretion and at any time, increase, reduce or eliminate a Participant’s Actual Award. The Actual Award may be below, at or above the Target Award, in the Committee’s discretion. The Committee may
determine the amount of any reduction on the basis of such factors as it deems relevant and will not be required to establish any allocation or weighting with respect to the factors it considers. 

(d) Discretion to Determine Criteria. Notwithstanding any contrary provision of the Plan, the Committee will, in its sole
discretion, determine the performance goals applicable to any Target Award which may include, without limitation: earnings (including earnings per share and net earnings); earnings before interest, taxes and depreciation; earnings before interest,
taxes, depreciation and amortization; total stockholder return; return on equity or average stockholder’s equity; return on assets, investment, or capital employed; stock price; margin (including gross margin); income (before or after taxes);
operating income measures; operating income after taxes; pre-tax profit; operating cash flow; sales or revenue targets; increases in revenue or product revenue; expenses and cost reduction goals; improvement
in or attainment of working capital levels; economic value added (or an equivalent metric); market share; cash flow; cash flow per share; share price performance; debt reduction; bookings measures; net retention rate; customer satisfaction;
stockholders’ equity; capital expenditures; debt levels; operating profit or net operating profit; workforce diversity; growth of net income or operating income; billings; financing; regulatory milestones; stockholder liquidity; corporate
governance and compliance; intellectual property; personnel matters; progress of internal research; progress of partnered programs; partner satisfaction; budget management; partner or collaborator achievements; internal controls, including those
related to the Sarbanes-Oxley Act of 2002; investor relations, analysts and communication; implementation or completion of projects or processes; employee retention; number of users, including unique users; strategic partnerships or transactions
(including in-licensing and out-licensing of intellectual property); establishing relationships with respect to the marketing, distribution and sale of Confluent’s
products; supply chain achievements; co-development, co-marketing, profit sharing, joint venture or other similar arrangements; individual performance goals; corporate development and planning goals; and other
measures of performance selected by the Committee. As determined by the Committee, the performance goals may be based on GAAP or Non-GAAP financial results, and any actual results may be adjusted by the
Committee for one-time items, unbudgeted or unexpected items and/or payments of Actual Awards under the Plan when determining whether the performance goals have been met. The goals may be on the basis of any
factors the Committee determines relevant and may be on an individual, divisional, business unit or company-wide basis. The performance goals may differ from Participant to Participant and from award to award. Failure to meet the goals will result
in a failure to earn the Target Award, except as provided in Section 3(c). 

  
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 4. Payment of Awards. 

(a) Right to Receive Payment. Each Actual Award will be paid solely from the general assets of Confluent. Nothing in this Plan
will be construed to create a trust or to establish or evidence any Participant’s claim of any right other than as an unsecured general creditor with respect to any payment to which he or she may be entitled. 

(b) Timing of Payment. To receive an Actual Award a Participant must be employed by Confluent or any Affiliate on the date the
Actual Award is paid, unless otherwise determined by the Committee in writing or except as required by law. However, Awards are not earned until no longer subject to recovery pursuant to the clawback provisions described in Section 8(g) below.
As a result, Confluent pays Awards in advance of the Participant’s earning of the Award, and such advances are subject to recovery pursuant to the clawback and recovery provisions described in Section 8(g) below. It is the intent that this
Plan be exempt from, or comply with, the requirements of Code Section 409A so that none of the payments to be provided hereunder will be subject to the additional tax imposed under Code Section 409A, and any ambiguities herein will be
interpreted to so comply. Each payment under this Plan is intended to constitute a separate payment for purposes of Treasury Regulation Section 1.409A-2(b)(2). 

(c) Form of Payment. Each Actual Award will be paid in cash (or its equivalent) in a single lump sum, unless otherwise
determined by the Committee in writing. 
 5. Plan Administration. 

(a) Administrator. The Plan will be administered by the Board or a Committee delegated such authority by the Board. The Committee
will consist of not less than two (2) members of the Board. References herein to the Committee as administrator of the Plan will be deemed to be references to the Board if no authority has been delegated to a Committee. 

(b) Committee Authority. It will be the duty of the Committee to administer the Plan in accordance with the Plan’s
provisions. The Committee will have all powers and discretion necessary or appropriate to administer the Plan and to control its operation, including, but not limited to, the power to (i) determine which Employees will be granted awards,
(ii) prescribe the terms and conditions of awards, (iii) interpret the Plan and the awards, (iv) adopt such procedures and sub-plans as are necessary or appropriate to permit participation in
the Plan by Employees who are foreign nationals or employed outside of the United States, (v) adopt rules for the administration, interpretation and application of the Plan as are consistent therewith, and (vi) interpret, amend or revoke
any such rules. 

  
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 (c) Decisions Binding. All determinations and decisions made by the Committee,
the Board, and any delegate of the Committee pursuant to the provisions of the Plan will be final, conclusive, and binding on all persons and will be given the maximum deference permitted by law. 

(d) Delegation by Committee. The Committee, in its sole discretion and on such terms and conditions as it may provide, may
delegate all or part of its authority and powers under the Plan to one or more directors and/or officers of Confluent. 
 6. General
Provisions. 
 (a) Taxes. Confluent will withhold all applicable taxes from any Actual Award, including any federal, state
and local taxes. 
 (b) No Effect on Employment or Service. Nothing in the Plan will interfere with or limit in any way the
right of Confluent to terminate any Participant’s employment or service at any time, with or without cause. Employment with Confluent and its Affiliates is on an at-will basis only. Confluent expressly
reserves the right, which may be exercised at any time and without regard to when during a Performance Period such exercise occurs, to terminate any individual’s employment with or without cause, and to treat him or her without regard to the
effect that such treatment might have upon him or her as a Participant. 
 (c) Participation. No Employee will have the right to
be selected to receive an award under this Plan, or, having been so selected, to be selected to receive a future award. 

(d) Successors. All obligations of Confluent under the Plan, with respect to awards granted hereunder, will be binding on any
successor to Confluent, whether the existence of such successor is the result of a direct or indirect purchase, merger, consolidation, or otherwise, of all or substantially all of the business or assets of Confluent. 

(e) Nontransferability of Awards. No award granted under the Plan may be sold, transferred, pledged, assigned, or otherwise
alienated or hypothecated, other than by will, by the laws of descent and distribution. All rights with respect to an award granted to a Participant will be available during his or her lifetime only to the Participant. 

7. Amendment, Termination, and Duration. 

(a) Amendment, Suspension, or Termination. The Committee, in its sole discretion, may amend or terminate the Plan, or any part
thereof, at any time and for any reason. The amendment, suspension or termination of the Plan will not, without the consent of the Participant, alter or impair any rights or obligations under any Actual Award theretofore earned by such Participant.
No award may be granted during any period of suspension or after termination of the Plan. 

  
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 (b) Duration of Plan. The Plan will commence on the date specified herein, and
subject to Section 7(a) (regarding the Committee’s right to amend or terminate the Plan), will remain in effect until terminated. 

8. Legal Construction. 

(a) Gender and Number. Except where otherwise indicated by the context, any masculine term used herein also will include the
feminine; the plural will include the singular and the singular will include the plural. 
 (b) Severability. In the event any
provision of the Plan will be held illegal or invalid for any reason, the illegality or invalidity will not affect the remaining parts of the Plan, and the Plan will be construed and enforced as if the illegal or invalid provision had not been
included. 
 (c) Requirements of Law. The granting of awards under the Plan will be subject to all applicable laws, rules and
regulations, and to such approvals by any governmental agencies or national securities exchanges as may be required. 

(d) Governing Law. The Plan will be construed in accordance with and governed by the laws of the State of Delaware, but without
regard to its conflict of law provisions. 
 (e) Bonus Plan. The Plan is intended to be a “bonus program” as defined
under U.S. Department of Labor regulation 2510.3-2(c) and will be construed and administered in accordance with such intention. 

(f) Captions. Captions are provided herein for convenience only and will not serve as a basis for interpretation or construction
of the Plan. 
 (g) Clawback; Recovery. All payments provided under the Plan will be subject to recoupment in accordance with any
clawback policy that Confluent adopts, including pursuant to the listing standards of any national securities exchange or association on which Confluent’s securities are listed or as is otherwise required by the Dodd-Frank Wall Street Reform
and Consumer Protection Act or other applicable law. In addition, Confluent may impose such other clawback, recovery or recoupment provisions as Confluent determines necessary or appropriate, including but not limited to a reacquisition right in
respect of previously acquired cash or property upon the occurrence of a termination of employment for cause. No recovery of compensation under such a clawback policy will be an event giving rise to a right to resign for good reason, constructive
termination, or any similar term under any plan of or agreement with Confluent. 

  
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