> The only problem is that the authenicator module processes that squid
> spawns don't get killed when squid is killed. It also seems to keep
> opening many more authenicator module processes while it runs even
> though I have limited it toi 5 children in squid.conf.
>
> Any suggestions?

Your program does not exit when stdin is closed.
I suggest changing your while loop to:

        while read AUTH ; do
                ...
        done

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