In this paper we consider U(1)-gauged Polonyi model with two spurions coupled to a twisted closed string modulus. This offers a consistent setup for metastable SUSY breakdown which allows for moduli stabilization and naturally leads to gauge or hybrid gauge/gravitational mediation mechanism. Due to the presence of the second spurion one can arrange for a solution of the mu and B_mu problems in a version of modified Giudice-Masiero mechanism, which works both in the limit of pure gauge mediation and in the mixed regime of hybrid mediation.
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