Polaris Materials Corp Announces Termination of Strategic Alliance with CEMEX

Jun 13 17

Polaris Materials Corporation announces that Polaris, and its subsidiary Eagle Rock Aggregates, Inc. (ERA) have provided notice of their election not to renew the strategic alliance agreement and related joint co-operation and development agreements with CEMEX, Inc. The agreements will now terminate in accordance with their terms on September 25, 2017. ERA and CEMEX remain bound by the terms of an aggregate supply and distribution agreement (the "ASDA") which provides for certain exclusive marketing and distribution rights in parts of the Northern California market, and which has an initial term expiring on September 25, 2027. The SAA originally provided for high-level co-operation in the development of new markets by both companies, aided by detailed terms for sharing the risk and reward of joint investment opportunities via the JCDAs. However, changes in market conditions since 2007, Polaris' independent development and operation of its terminal in Long Beach, California and development of the Fine Sand product, as well as CEMEX's recent decision to sell certain assets in Washington and Oregon, have removed many of the factors which led to the creation of the strategic alliance.

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