Document:

Exhibit 10.29  

(REVISED
11/7/02) 

September 6,
2002 

Russell
Stern

Dear
Russell: 

        It
is a pleasure to offer you a full-time position with JNI as our new President & Chief Executive Officer. You will be offered an invitation to join the Board of
Directors. In this capacity, you will have complete operating responsibility for the Company and all of its business operations. In this position, you will report to the Board of Directors and the
Chairman of the Board. We have agreed that your start date will be September 8, 2002. You will participate in the Company's D&O Roadshow to New York, currently scheduled for September 19
- 20, 2002, but will have paid leave of absence time to wind down your affairs at your current company through September 30, 2002.    This offer and your employment
relationship will be subject to the terms and conditions of this letter. Other details of your offer are as follows: 

        If
you decide to join us, your initial base salary will be $29,166.67 per month ($350,000 annually), less applicable withholdings, commencing as of your start date. You will be paid on a
bi-weekly basis in accordance with JNI's normal payroll practices, and your paycheck will be automatically deposited in the bank of your choice. Future increases in compensation, if any,
will be made in the sole and exclusive discretion of JNI, subject to the terms of this letter. 

        Subject
to approval by the Board of Directors, the company will grant you an option to purchase 350,000 shares of common stock. The exercise price per share of this option will be equal
to the closing price for the stock on Friday, September 6, 2002, if this letter is fully executed by September 8, 2002. If the market is closed on your first day of employment, then
these options will be priced at the closing
price for the last market day prior to your employment. These options will vest, subject to your continuing employment, at the rate of 25% on the first anniversary of your employment and then monthly
in equal amounts until 100% of the options have been vested at the end of four years. It is also agreed that the Board of Directors will grant you a second option of 350,000 shares of common stock, on
approximately March 31, 2003 or whenever the company issues new shares to employees as part of the current Tender Offer filed with the SEC on August 29, 2002. In the event of a change in
control before such time, the 350,000 options will be granted upon such change of control at the price of the company's stock, averaged over the ten trading days prior to announcement of the event
triggering the Change of Control. The exercise price per share of this option will be equal to the closing price for the stock on the grant date, with a vesting to commence retroactive to your initial
employment date. This option will vest on the same schedule as your initial option. 

        You
will receive a $125,000 hire-on bonus (less applicable taxes) to be paid after thirty days of employment. Additionally, to support your daily commute to the JNI, the
company will provide a $1,500 per month car allowance until such time as you choose to relocate to San Diego. 

        You
will be eligible for a performance bonus, the details of which are discussed below. Your FY2003 bonus will be targeted at 80% of base salary with a maximum payout of 200% of base
salary. This bonus will not be guaranteed; however, the Board will work closely with you to agree on the FY2003 revenue and profit objectives for JNI, which will be the basis for your bonus
performance measurement and payout. 

        In
the event you are terminated for reasons other than for "cause" during your period of service as CEO of JNI, you will receive a severance package of 18 months of base salary,
plus an amount equal to your target bonus for the year in which you are terminated prorated through the date of termination, in accordance with JNI's normal payroll practices. Severance will not be
paid in the event of voluntary resignation. If you resign due to our breach of our obligations under this Agreement, such 

 

resignation shall not be deemed a voluntary resignation but rather a constructive termination entitling you to severance hereunder. Cause shall mean (a) acts or omissions in the performance of
your duties constituting gross negligence, recklessness or willful misconduct; which acts or omissions are not cured by you within a reasonable time period after written notice is given to you by JNI;
(b) material breach of JNI's confidentiality and proprietary rights agreement; (c) conviction or entry of a plea of nolo contendere for fraud, misappropriation or embezzlement, or any
felony or crime of moral turpitude; (d) willful neglect of duties as determined in the sole and exclusive discretion of the Board of Directors; which neglect is not cured by you within a
reasonable time period after written notice is given to you by JNI; (e) failure to perform the essential functions of your position, with or without reasonable accommodation, due to a mental or
physical disability; or (f) death. No cash severance payment shall be payable pursuant to this offer letter unless you (i) have executed a general release (in a form prescribed by the
Company) of all known and unknown claims that you may then have against the Company or
persons affiliated with the Company, (ii) have agreed not to prosecute any legal action or other proceeding based upon any of such claims and (iii) have agreed to comply with all
surviving provisions of your agreements with the Company in effect on the date of your termination. 

        In
case of a change of control of JNI, you will not be entitled to the above severance package, but instead will be entitled to severance pursuant to a Change of Control Agreement to be
entered into between you and JNI. The Change of Control Agreement will provide 18 months base salary and bonus at target, and accelerating of vesting of all options. This benefit will stay in
effect for one year from the change of control event as defined by the official "close" date for a transaction. 

        The
highlights of your major benefits are as follows: 

	•
	Paid
Time Off (PTO) accrual of 6.15 hours per pay period (total of 20 days annually).

	•
	Eleven
paid holidays per calendar year.

	•
	Company-paid
life insurance.

	•
	Company-paid
long-term disability insurance.

	•
	Participation
in the Company's 401(k) plan.

	•
	Participation
in the Company's Employee Stock Purchase Plan (ESPP).

	•
	401(k)
matching contribution up to a maximum of 5% of earned salary per calendar year.

	•
	Group
health and dental insurance effective the first day of employment.

	•
	Executive
Management Supplemental Medical Plan—up to $50,000 annual reimbursement, with a maximum of $5,000 per occurrence. 

        Your
employment with the company is "at will". This means that your employment is not for any specified period of time, and you are free to resign at any time. Likewise, JNI is free to
terminate your employment at any time for any reason, with or without notice. Your "at will" status cannot be altered except in writing, which has been signed by you and a duly authorized member of
the Board of Directors of JNI. Further, your participation in any equity, stock option or benefit program is not to be regarded as assuring you of continuing employment for any particular period of
time. 

        This
offer is contingent upon the satisfactory completion of the verification process, receipt of satisfactory references, and signing of a standard Confidentiality Agreement and
Assignment of Inventions Agreement and final approval by the Board of Directors. If you are willing to accept this offer of employment, please sign and return one copy to me, and retain a copy for
your records. If we do not receive your acceptance on or before September 8, 2002 before 6:00pm, this offer will expire. 

        Upon
acceptance of this offer, it will be necessary for you to submit documents to Human Resources evidencing both your employment authorization and identity. This requirement is in 

2

 

accordance with the Immigration Reform Act of 1986. Documents that will be accepted include, but are not limited to: 

	•
	a
valid driver's license and social security card, or

	•
	an
unexpired United States passport, or

	•
	Immigration
and Naturalization Service documents (if applicable) 

        It
is our hope that you will make a significant and lasting contribution to JNI Corporation, and that you will find your job and the Company to be both rewarding and exciting. The
management team of the Company is excited about the prospects of your taking on the leadership role at JNI, and being their new CEO. There is much to be done at JNI, and you can count on full support
of the Board as you take on this new responsibility. 

Sincerely,

John
C. Stiska

Chairman of the Board, JNI Corporation 

3

 

        I
accept the employment offer, and its terms, contained in this letter. I have received no promises or commitments from the Company other than those contained in this letter. I
understand and agree that my employment with JNI is at-will and contingent on the execution and delivery of JNI's confidentiality and proprietary rights assignment agreement. 

	 	 	Accepted by:	    
 Russell Stern
	

 	
 	

Acceptance Date:	

    

	

 	
 	

Start Date:	

    

Enclosures

mjm 

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Exhibit 10.30  

 
 

SEVERANCE AND CHANGE OF
  CONTROL AGREEMENT    
  

        THIS SEVERANCE AND CHANGE OF CONTROL AGREEMENT (the "Agreement") is made effective as of September 8, 2002, between JNI Corporation, a Delaware corporation
("JNI"), and Russell Stern ("Employee"), subject to JNI's Board of Directors' approval. 

 
 

RECITALS    
  

	A.
	Employee
is presently employed as the President and Chief Executive Officer of JNI.

	B.
	Employee
and JNI desire to memorialize in writing their understanding regarding severance payments and vesting of options in the event of a Change in Control.

	C.
	JNI
desires to make consistent all of its arrangements with its employees with respect to the rights and responsibilities of such employees following a change of control and Employee
acknowledges the need for such consistency. 

 
 

AGREEMENT    
  

        In consideration of the promises and of the mutual covenants contained herein, and for other good and valuable consideration, receipt of which is hereby
acknowledged, the parties do hereby agree as follows: 

        1.    Effect of Certain Terminations after Change in Control.    

        1.1    Severance Package.    If within one (1) year after a Change in Control (as that term is defined below)
Employee's employment is terminated without "Cause," or Employee resigns, then JNI will provide Employee with the following "Severance Package," provided Employee complies with the conditions set
forth in section 1.2 below: (i) Employee will receive a severance payment equal to eighteen (18) months' of Employee's base salary plus bonus at target for such eighteen
(18) month period, payable in a lump sum within 30 days of such termination without Cause or resignation and (ii) accelerated vesting of all options granted to Employee under
JNI's stock option plans that, as of the date of such termination without Cause or voluntary resignation, remain unexercised and unvested, to the extent permissible by law. The acceleration of vesting
provision set forth in this section 1.1 is notwithstanding and in addition to any existing vesting provisions set forth in JNI's stock option plans. 

        1.2    Conditions to Receive Severance Package.    The Severance Package described above will be paid provided
Employee meets the following conditions: (a) Employee complies with all surviving provisions of any confidentiality or proprietary rights agreement signed by Employee; and (b) Employee
executes a full general release, in a form acceptable to JNI, releasing all claims, known or unknown, that Employee may have against JNI, and any subsidiary or related entity, their officers,
directors, employees and agents, arising out of or any way related to Employee's employment or termination of employment with JNI. 

        1.3    Change in Control.    A "Change in Control" means: (i) the acquisition by an individual person or entity
or a group of individuals or entities acting in concert, directly or indirectly, through one transaction or a series of related transactions, of more than 50% of the outstanding voting securities of
JNI; (ii) a merger or consolidation of JNI with or into another entity after which the stockholders of JNI immediately prior to such transaction hold less than 50% of the voting securities of
the surviving entity; or (iii) a sale of all or substantially all of the assets of JNI or (iv) the change in the majority of the Board of Directors pursuant to a successful hostile
proxy contest. 

 

        1.4    Termination for "Cause."    For purposes of this Agreement, a termination for "Cause" occurs if Employee is
terminated for any of the following reasons: (i) theft, dishonesty, or falsification of any material JNI records; (ii) improper disclosure of JNI's confidential or proprietary
information; (iii) Employee's failure or inability to perform any reasonable assigned duties after written notice from JNI of, and a reasonable opportunity to cure, such failure or inability;
or (iv) Employee's conviction of any criminal act which impairs his ability to perform his duties as an employee of JNI. Notwithstanding the foregoing clause (iii), Employee may not be
terminated for Cause as a result of his failure or inability to perform assigned duties which are substantially inconsistent with his duties and responsibilities in effect during the year preceding
the Change in Control (or such shorter period of time as Employee was employed by JNI). 

        1.5    Payment Upon Death or Disability.    Neither death nor disability shall affect JNI's obligations hereunder. 

        2.    At-Will Employment.    Employee acknowledges that Employee continues as an at-will
employee and agrees that nothing in this Agreement is intended to or should be construed to contradict, modify or alter Employee's at-will employment relationship with JNI. 

        3.    General Provisions.    

        3.1    Severability.    If any provision of this Agreement is held by a court of competent jurisdiction to be invalid,
void or unenforceable, the remaining provisions shall nevertheless continue in full force without being impaired or invalidated in any way. 

        3.2    Successors and Assigns.    The rights and obligations of JNI under this Agreement shall inure to the benefit of
and shall be binding upon the successors and assigns of JNI. Employee shall not be entitled to assign any of his rights or obligations under this Agreement, other than to his estate as provided in
section 1.7. 

        3.3    Applicable Law.    This Agreement shall be interpreted, construed, governed and enforced in accordance with the
laws of the United States of American and the State of California. Each of the parties irrevocably consents to the exclusive jurisdiction of the federal and state courts located in San Diego,
California, as applicable, for any matter arising out of or relating to this Agreement. 

        3.4    Amendments.    No amendment or modification of the terms or conditions of this Agreement shall be valid unless
in subsequent writing and signed by the parties thereto. 

        IN
WITNESS WHEREOF, the parties hereto execute this Agreement, effective as of the date first above written. 

	EMPLOYEE:	 	JNI CORPORATION
	

  

	
 	

By:	

    

	    
	 	Title:	    

	Address:	 	 	 
	    
    
	 	Address:`	10945 Vista Sorrento Parkway

San Diego, CA 92130

2

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SEVERANCE AND CHANGE OF CONTROL AGREEMENT

RECITALS

AGREEMENT

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