Supplier Quality Requirements Manual

1. General

At Aero-Shield Capital, Inc., we recognize the critical role quality assurance plays in our success. Our goal is to ensure our customers are provided with the highest quality products and services. This depends on the integrity of materials and products from our supply chain. Aero-Shield Capital seeks to establish long-term strategic relationships with Suppliers who consistently meet or exceed these requirements.

All materials and products received are expected to be 100% compliant with the requirements set forth herein.

1.1 Purpose & Applicability

This manual serves as a guide for Suppliers and Service Providers to understand Aero-Shield Capital’s quality management requirements, ensuring compliance with all applicable regulations and standards while maintaining consistency in product quality and performance.

This document applies to all Suppliers, Service Providers, and, when applicable, their sub-tier sources. Aero-Shield Capital holds the authority to grant final approval for all products, processes, procedures, and equipment related to Purchase Orders and Repair Orders issued.

1.2 Acknowledgement & Acceptance

The requirements, Purchase Order and Repair Order criteria, and any accompanying attachments or exhibits form the complete procurement proposal offered by Aero-Shield Capital. Fulfilling any part of the Purchase Order or Repair Order shall constitute the Supplier’s acknowledgment and commitment to compliance.

Any conflicting conditions suggested by the Supplier are void unless agreed in writing by both parties.

2. Requirements for Purchase Orders and Repair Orders

2.1 Quality System for Suppliers

All Suppliers must meet one of the following minimum quality system requirements:

• Registration to a recognized industry-standard quality management system by an accredited third-party registration body; or
• Compliance with a recognized industry-standard quality management system, with certification preferred.

2.2 Part and Documentation Requirements for Purchase Orders

• Identification of Parts Under Extreme Conditions – Parts known to have been subjected to conditions of extreme stress, heat, or environmental factors must be clearly identified and documented.
• Documentation of Airworthiness Directives (ADs) – All ADs claimed as accomplished must be fully documented, with evidence provided.
• Documentation for Overhauled, Repaired, Inspected, or Modified Items – Must include appropriate signed and dated documentation, indicating condition and work performed.
• Trace Documentation Requirements – All items must include trace to the OEM, Repair Station, or last operator (under 121, 129, 135, or 145 regs) unless prior approval is obtained.
• Supporting Documentation – Must include a Material Certification naming the specified source and providing company name, source, condition, and part number.
• Inspection and Acceptance – All items shipped are subject to inspection and acceptance by Aero-Shield Capital.
• Approval of PMA or DER Parts – Not accepted unless prior approval is obtained.
• Guaranteed Repairable Material – All AR (As Removed) material is considered guaranteed repairable unless otherwise specified.
• Shelf-Life Requirement – All items supplied must have at least 80% of original shelf life remaining, unless prior approval is obtained.
• Hazardous Materials (Hazmat) – Must be identified, packaged, labeled, and documented per DOT, IATA, and OSHA requirements. MSDS/SDS must be included when required.
• CAGE Code – If available, the manufacturer’s CAGE Code must be included on shipping documents, data plates, and part markings.

2.2.1 Additional Trace and Documentation Requirements

• Traceability – All parts must include trace to the last Airline Operator or OEM source. Documentation must include:
  • Non-Incident Statement(s); and
  • Ownership Transfer documentation confirming chain of custody.
• Certificate of Conformity (CoC) – Each shipment must include a Company CoC specifying:
  • Part number
  • Serial number
  • Description
  • Condition
• Inspection and Acceptance – All parts remain subject to Aero-Shield Capital’s inspection and acceptance at destination, regardless of documentation provided.
• Extreme Stress / Environmental Exposure – Aero-Shield Capital shall not accept any part from an aircraft, engine, or inventory known to have been subject to extreme stress, heat, or environmental exposure (including fire, flood, corrosive storage, or warehouse incident). Such items must be disclosed prior to shipment and will be automatically rejected.
• Airworthiness Directives (ADs) – For parts represented as serviceable or better, all ADs must be documented with complete details, including:
  • AD number
  • Amendment number
  • Date of compliance
  • Method of compliance (e.g., “AD xx-xx-xx terminated on 2026”).
• Condition Documentation – Items identified as overhauled, rebuilt, repaired, inspected, or modified must include signed and dated documentation from the certifying agency. Stamped or preprinted signatures are not acceptable.

2.3 Service Provider Requirements for Repair Orders

(teardowns, airframe and engine repair/overhaul, tagging, AD compliance, shelf-life documentation, DER approvals only with permission, record retention for 10+ years — unchanged except references updated to Aero-Shield Capital)

2.4 Control of Sub-Tier Suppliers

Suppliers must ensure sub-tier compliance with these requirements and provide evidence upon request.

2.5 Changes in Product, Process, Suppliers, or Location

No changes may be made without prior written approval from Aero-Shield Capital.

2.6 Calibration Requirements

All test equipment must be calibrated to NIST standards. Calibration suppliers must comply with ANSI/NCSL Z540-1 and ISO/IEC 17025.

2.7 Right of Access

Aero-Shield Capital, its customers, and regulators retain right of access to supplier and sub-tier facilities for inspections, audits, or surveillance.

3. Supplier Performance Monitoring

3.1 Performance Criteria

Supplier performance is based on quality and delivery.

Escalation Process:

• Step 1: Written Warning
• Step 2: Procurement Hold (no new POs until corrective action verified)
• Step 3: Removal from Approved Supplier List

3.2 Nonconformances

Suppliers must disclose and obtain prior approval before shipping non-conforming parts. Unauthorized shipments may be returned at supplier’s expense.

3.3 Supplier Corrective Action Report (SCAR)

SCAR responses are due within 15 business days. Extensions must be requested. Failure to comply may result in de-sourcing.

4. Additional Obligations

4.1 Employee Training & Awareness

Suppliers must ensure personnel are trained in requirements, nonconformance handling, process compliance, and ethical conduct.

4.2 Counterfeit Parts Prevention

Suppliers shall implement processes to prevent, detect, and mitigate counterfeit parts.

4.3 Confidentiality

All Aero-Shield information is confidential and may not be disclosed without prior written consent.

4.4 Export Control & Sanctions Compliance

Suppliers must comply with ITAR, EAR, OFAC, and all applicable U.S. and international trade laws.

4.5 Insurance Requirements

Suppliers must maintain adequate insurance, including Commercial General Liability, Aviation Product Liability (as applicable), and Workers’ Compensation. Certificates naming Aero-Shield Capital as additional insured must be provided upon request.

4.6 Indemnification

Suppliers shall indemnify and hold harmless Aero-Shield Capital against any claims, penalties, or losses arising from non-conforming or counterfeit parts, regulatory violations, or supplier breach.

4.7 Warranty & Liability Disclaimer

Aero-Shield Capital, Inc. does not provide any direct warranty on products sold, leased, or exchanged. Aero-Shield Capital will assist in facilitating warranty claims with the last certifying agency but assumes no liability for performance, defects, or failures of supplied parts.

4.8 Revision History