Zone Frontier, formerly CleanCore Solutions, has completed the separation of two senior executives following its sale of substantially all assets of its legacy aqueous ozone cleaning-products business. The departures took effect Oct. 23; the company said both executives’ roles were eliminated as part of the sale and were unrelated to its data center development business.
The company also agreed to cash severance and transition arrangements with former President Travis Buchanan and former Chief Revenue Officer Gary Hollst.
- Buchanan’s departure: His employment ended without cause, and he resigned from all positions with Zone Frontier and its related entities. He is eligible for a $150,000 lump-sum severance payment, plus $2,519 for unused paid time off and any earned but unpaid salary through Oct. 23.
- Buchanan’s restriction and transition duties: He must forfeit unpaid severance and repay any amount already received if, during the 12 months after the Oct. 7 sale closing, he works for or provides services to the buyer, its affiliates or a successor to the cleaning-products business. A passive equity interest in the buyer does not trigger that condition. He has agreed to provide transition help for six months, up to five hours a week, at an hourly rate based on his former salary. Zone Frontier will maintain his directors’ and officers’ liability insurance for six years on terms no less favorable than those for other former officers and directors.
- Hollst’s departure: His employment also ended without cause, and he resigned from all company and related-entity positions. He is eligible for $125,000 in lump-sum severance, plus earned but unpaid salary through Oct. 23 and about $7,634 for unused paid time off.
- Hollst’s terms: Unlike Buchanan, Hollst may work for the buyer or its affiliates without losing his severance. Repayment would be required only if he materially breaches specified confidentiality, non-disparagement or company-property obligations and that breach is established by a final, non-appealable judgment. He will provide transition assistance for 12 months; work beyond five hours in any calendar month is paid at $250 an hour.
- Other agreement terms: Both executives’ employment agreements ended, including their non-compete and non-solicitation obligations; confidentiality commitments continue. Both severance agreements include releases of claims, subject to exceptions. Hollst’s release does not cover certain agreements involving Zone Frontier director Clayton Adams, the buyer or related parties, including a share-surrender agreement to which Zone Frontier is a party. The agreement states that, apart from that share-surrender agreement, Zone Frontier and its subsidiaries have no obligations under the other specified agreements.
What changes for the business: The two positions were tied solely to the divested cleaning-products business, and the company said neither executive had responsibility for its data center development business. The departures therefore mark a management transition associated with the asset sale, rather than a disclosed change in leadership of the data center operation.
The report also references a corporate charter change filed Oct. 23, but the available text does not describe what was amended or how it affects shareholders.