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I haven't played this game in a while so I can't remember what the boss said, but the idea was that Jade is the Domz power source that was stolen from them and incarnated into human form. And as for Peyj, that you'll have to wait for the sequel to find out about.
"Hey Sockbaby! You wanna food up with us or what?!" Game o' the Moment: Ninja Gaiden II