Document:

EXHIBIT 10.106

                 WAIVER AND THIRD AMENDMENT TO CREDIT AGREEMENT

         This WAIVER AND THIRD AMENDMENT TO CREDIT AGREEMENT ("Amendment") is
dated as of January 28, 2000, and is entered into by and between DEFLECTA-SHIELD
CORPORATION, LUND INDUSTRIES, INCORPORATED, BELMOR AUTOTRON CORP., DFM CORP.,
AUTO VENTSHADE COMPANY and SMITTYBILT, INC. (each a "Borrower" and,
collectively, the "Borrowers"), LUND INTERNATIONAL HOLDINGS, INC. ("Holdings"),
LUND ACQUISITION CORP., BAC ACQUISITION CO., TRAILMASTER PRODUCTS, INC. and
DELTA III, INC. (together with Borrowers and Holdings, each a "Loan Party", and
collectively, the "Loan Parties"), HELLER FINANCIAL, INC., in its capacity as
Agent ("Agent"), and the Lenders which are signatories hereto.

         WHEREAS, Agent, Lenders and the Loan Parties are parties to a certain
Credit Agreement dated February 27, 1998 (as such agreement has from time to
time been amended, supplemented or otherwise modified, the "Agreement"); and

         WHEREAS, Events of Default are in existence under the Agreement as a
result of Borrower's breach of the following financial covenants for the twelve
(12) month period ending December 31, 1999: EBITDA (subsection 4.3), Fixed
Charge Coverage (subsection 4.4), Total Interest Coverage (subsection 4.5) and
Total Indebtedness to EBITDA Ratio (subsection 4.6) (the "Existing Events of
Default"), and Borrowers have requested that Agent and Lenders waive the
Existing Events of Default; and

         WHEREAS, the parties desire to amend the Agreement as hereinafter set
forth.

         NOW THEREFORE, in consideration of the mutual conditions and agreements
set forth in the Agreement and this Amendment, and other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, the
parties hereto hereby agree as follows:

         1. DEFINITIONS. Capitalized terms used in this Amendment, unless
otherwise defined herein, shall have the meaning ascribed to such terms in the
Agreement.

         2. AMENDMENTS. Subject to the conditions set forth below, the Agreement
is amended as follows:

                  (a) Subsection 1.2 is amended by deleting the definition of
"LIBOR" and inserting the following in lieu thereof:

                  "LIBOR" means, for each Interest Period, a rate per annum
         equal to:

                  (a) the offered rate for deposits in U.S. dollars in an amount
         comparable to the amount of the applicable Loan in the London interbank
         market which is published by the British Bankers' Association, and that
         currently appears on Telerate Page 3750, or any other source available
         to Agent, as of 11:00 a.m. (London time) on the day which is two (2)
         Business Days prior to the first day of the relevant Interest Period
         for a term comparable to such Interest Period; or if, for any reason,
         such a rate is not published by the British Bankers' Association on
         Telerate or any other source available to Agent, the rate per annum
         equal to the average rate (rounded upwards, if necessary, to the
         nearest 1/100 of 1%) at which Agent determines that U.S. dollars in an
         amount comparable to the amount of the applicable Loans are being
         offered to prime banks at approximately 11:00 a.m. (London time) on the
         day which is two (2) Business Days prior to the first day of such
         Interest Period for a term comparable to such Interest Period for
         settlement in

<PAGE>

         immediately available funds by leading banks in the London interbank
         market selected by Agent; divided by

                  (b) a number equal to 1.0 minus the aggregate (but without
         duplication) of the rates (expressed as a decimal fraction) of reserve
         requirements in effect on the day which is two (2) Business Days prior
         to the beginning of such Interest Period (including, without
         limitation, basic, supplemental, marginal and emergency reserves under
         any regulations of the Board of Governors of the Federal Reserve System
         or other governmental authority having jurisdiction with respect
         thereto, as now and from time to time in effect) for Eurocurrency
         funding (currently referred to as "Eurocurrency Liabilities" in
         Regulation D of such Board) which are required to be maintained by a
         member bank of the Federal Reserve System; such rate to be rounded
         upward to the next whole multiple of one-sixteenth of one percent
         (.0625%).

                  (b) Subsection 1.2(A) is amended by deleting the Base Rate
Margin Pricing Table and the LIBOR Margin Pricing Table in their entirety and
inserting the following in lieu thereof:

<TABLE>
<CAPTION>
                                                BASE RATE PRICING TABLE
------------------------- ---------------------- ----------------------- ---------------------- ----------------------
Total Indebtedness to       Base Rate Margin        Base Rate Margin       Base Rate Margin       Base Rate Margin
EBITDA is:                   Revolving Loans          Term Loan A             Term Loan B            Term Loan C
------------------------- ---------------------- ----------------------- ---------------------- ----------------------
<S>                               <C>                     <C>                       <C>                    <C>
    greater than
     5.50:1.00                    2.25%                   2.25%                     2.75%                  3.25%
------------------------- ---------------------- ----------------------- ---------------------- ----------------------
equal to or less than
5.50:1.00 but
equal to or greater
than 5.00:1.00                    2.00%                   2.00%                     2.50%                  3.00%
------------------------- ---------------------- ----------------------- ---------------------- ----------------------
equal to or less than
5.00:1.00 but equal to
or greater than
3.75:1.00                         1.75%                   1.75%                    2.25%                   2.75%
------------------------- ---------------------- ----------------------- ---------------------- ----------------------
less than 3.75:1.00               1.50%                   1.50%                    2.00%                   2.50%
------------------------- ---------------------- ----------------------- ---------------------- ----------------------
</TABLE>

<TABLE>
<CAPTION>
                                                         LIBOR MARGIN PRICING TABLE
------------------------- ---------------------- ----------------------- ---------------------- ----------------------
Total Indebtedness to         LIBOR Margin            LIBOR Margin           LIBOR Margin           LIBOR Margin
EBITDA is:                   Revolving Loans          Term Loan A             Term Loan B            Term Loan C
------------------------- ---------------------- ----------------------- ---------------------- ----------------------
<S>                               <C>                     <C>                       <C>                    <C>
greater than
5.50:1.00                         3.50%                   3.50%                     4.00%                  4.50%
------------------------- ---------------------- ----------------------- ---------------------- ----------------------
equal to or less
than 5.50:1.00
but greater than
5.00:1.00                         3.25%                   3.25%                     3.75%                  4.25%
------------------------- ---------------------- ----------------------- ---------------------- ----------------------
equal to or less than
5.00:1.00
but greater than
3.75:1.00                         3.00%                   3.00%                     3.50%                  4.00%
------------------------- ---------------------- ----------------------- ---------------------- ----------------------
less than 3.75:1.00               2.75%                   2.75%                     3.25%                  3.75%
------------------------- ---------------------- ----------------------- ---------------------- ----------------------
</TABLE>

                                        2
<PAGE>

Notwithstanding anything to the contrary contained in the Agreement, commencing
         on January 1, 2000 until the Adjustment Date next following said date,
         the LIBOR Margin for all outstanding LIBOR Loans and the Base Rate
         Margin for all outstanding Base Rate Loans shall equal the rates
         corresponding to the level "equal to or less than 5.50:1.00 but equal
         to or greater than 5.00:1.00" set forth in each of the Pricing Tables
         above.

                  (c) Subsection 4.3 is amended by deleting such subsection in
its entirety and inserting the following in lieu thereof:

                  4.3 EBITDA. Holdings and Borrowers shall not permit EBITDA for
         the periods set forth below to be less than the amounts set forth
         below.

                           Period                                Amount
                           ------                                ------

         Four Fiscal Quarters ending March 31, 2000           $20,300,000
         Four Fiscal Quarters ending June 30, 2000            $21,100,000
         Four Fiscal Quarters ending September 30, 2000       $22,500,000
         Four Fiscal Quarters ending December 31, 2000        $26,300,000

         Four Fiscal Quarters ending March 31, 2001           $32,000,000
         Four Fiscal Quarters ending June 30, 2001            $32,000,000
         Four Fiscal Quarters ending September 30, 2001       $34,000,000
         Four Fiscal Quarters ending December 31, 2001        $34,000,000

         Four Fiscal Quarters ending March 31, 2002 and       $35,000,000
         each four-Fiscal-Quarter period thereafter

         "EBITDA" will be calculated as illustrated on Exhibit 4.7(D).

                  (d) Subsection 4.4 is amended by deleting said subsection in
its entirety and inserting the following in lieu thereof:

                  4.4 Fixed Charge Coverage. Holdings and Borrowers shall not
         permit Fixed Charge Coverage for the periods set forth below to be less
         than the ratios set forth below.

                                                                        Minimum
                                    Period                               Ratio
                                    ------                               -----

                  Four Fiscal Quarters ending March 31, 2000           0.75:1.00
                  Four Fiscal Quarters ending June 30, 2000            0.75:1.00
                  Four Fiscal Quarters ending September 30, 2000       0.75:1.00
                  Four Fiscal Quarters ending December 31, 2000        1.00:1.00

                  Four Fiscal Quarters ending March 31, 2001 and       1.10:1.00
                  each four-Fiscal-Quarter period thereafter

         "Fixed Charge Coverage" will be calculated as illustrated on Exhibit
4.7(D).

                  (e) Subsection 4.5 is amended by deleting said subsection in
its entirety and inserting the following in lieu thereof:

                                       3
<PAGE>

                  4.5 Total Interest Coverage. Holdings and Borrowers shall not
         permit Total Interest Coverage for periods set forth below to be less
         than the ratios set forth below.

                                                                        Minimum
                                    Period                               Ratio

                  Four Fiscal Quarters ending March 31, 2000           1.10:1.00
                  Four Fiscal Quarters ending June 30, 2000            1.20:1.00
                  Four Fiscal Quarters ending September 30, 2000       1.30:1.00
                  Four Fiscal Quarters ending December 31, 2000        1.80:1.00

                  Four Fiscal Quarters ending March 31, 2001           2.25:1.00
                  Four Fiscal Quarters ending June 30, 2001            2.50:1.00
                  Four Fiscal Quarters ending September 30, 2001       2.75:1.00
                  Four Fiscal Quarters ending December 31, 2001        2.75:1.00

                  Four Fiscal Quarters ending March 31, 2002 and       3.00:1.00
                  each four-Fiscal-Quarter period thereafter

         "Total Interest Coverage" will be calculated as illustrated on Exhibit
4.7(D).

                  (f) Subsection 4.6 is amended by deleting said subsection in
its entirety and inserting the following in lieu thereof:

                  4.6 Total Indebtedness to EBITDA Ratio. Holdings and Borrowers
         shall not permit the ratio of Total Indebtedness (calculated as of the
         last day of any Fiscal Quarter) to EBITDA for the periods set forth
         below to be greater than the ratios set forth below:
                                                                        Maximum
                                    Period                               Ratio

                  Four Fiscal Quarters ending March 31, 2000           5.50:1.00
                  Four Fiscal Quarters ending June 30, 2000            5.50:1.00
                  Four Fiscal Quarters ending September 30, 2000       4.90:1.00
                  Four Fiscal Quarters ending December 31, 2000        3.85:1.00

                  Four Fiscal Quarters ending March 31, 2001           3.50:1.00
                  Four Fiscal Quarters ending June 30, 2001            3.00:1.00
                  Four Fiscal Quarters ending September 30, 2001       2.75:1.00
                  Four Fiscal Quarters ending December 31, 2001        2.50:1.00

                  Four Fiscal Quarters ending March 31, 2002 and       2.50:1.00
                  each four-Fiscal-Quarter period thereafter

         "Total Indebtedness" and "EBITDA" will be calculated as illustrated on
Exhibit 4.7(D).

                   (g) Exhibit 4.7(D) is amended by deleting those portions of
that Exhibit setting forth the calculations for determining compliance with the
EBITDA and the Total Indebtedness to EBITDA covenants in their entirety and
substituting the attached in lieu thereof.

                                       4
<PAGE>

                   (h) When determining EBITDA under Exhibit B to Exhibit 4.7(D)
of the Agreement, Borrowers will be permitted to add back during the "Permitted
Testing Periods" (as defined below), the "Restructuring Charges" as defined on
the attached Schedule I, up to an aggregate amount of $4,100,000 for costs
incurred from the period beginning January 1, 2000 through December 31, 2001.
The "Permitted Testing Periods" shall mean the four Fiscal Quarters beginning
with and including the Fiscal Quarter in which the initial applicable
Restructuring Charge is incurred and ending with and including the next three
Fiscal Quarters thereafter.

         3. WAIVER. Agent and Lenders hereby waive the Existing Events of
Default. This is a limited waiver and shall not be deemed to constitute a waiver
of any other Event of Default or any future breach of the Agreement or any of
the other Loan Documents.

         4. CONDITIONS. The effectiveness of this Amendment is subject to the
following conditions precedent (unless specifically waived in writing by Agent):

                  (a) Loan Parties shall have executed and delivered this
Amendment, and such other documents and instruments as Agent may require shall
have been executed and/or delivered to Agent;

                  (b) All proceedings taken in connection with the transactions
contemplated by this Amendment and all documents, instruments and other legal
matters incident thereto shall be satisfactory to Agent and its legal counsel;

                  (c) No Default or Event of Default other than the Existing
Events of Default shall have occurred and be continuing;

                  (d) Borrowers shall have paid an amendment fee in the amount
of $250,315 to Agent for the benefit of Lenders; and

                  (e) Borrowers shall have provided Agent and Lenders with
evidence satisfactory to it that Massachusetts Mutual Life Insurance Company,
MassMutual Corporate Investors, MassMutual Participation Investors, MassMutual
Corporate Value Partners Limited and National City Venture Corporation shall
have waived in writing on or before the date hereof subsection 14.7 of the
Securities Purchase Agreement dated December 23, 1998, in a manner satisfactory
to Agent and shall have reset the covenants contained therein to levels
satisfactory to Agent.

         5. REPRESENTATIONS AND WARRANTIES. To induce Agent and Lenders to enter
into this Amendment, the Loan Parties represent and warrant to Agent and Lenders
that (a) the execution, delivery and performance of this Amendment has been duly
authorized by all requisite corporate action on the part of each Loan Party and
that this Amendment has been duly executed and delivered by such Loan Party, and
(b) each of the representations and warranties set forth in section 5 of the
Agreement (other than those which, by their terms, specifically are made as of
certain date prior to the date hereof) are true and correct in all material
respects as of the date hereof.

         6. SEVERABILITY. Any provision of this Amendment held by a court of
competent jurisdiction to be invalid or unenforceable shall not impair or
invalidate the remainder of this Amendment and the effect thereof shall be
confined to the provision so held to be invalid or unenforceable.

         7. REFERENCES. Any reference to the Agreement contained in any
document, instrument or agreement executed in connection with the Agreement
shall be deemed to be a reference to the Agreement as modified by this
Amendment.

                                       5
<PAGE>

         8. COUNTERPARTS. This Amendment may be executed in one or more
counterparts, each of which shall constitute an original, but all of which taken
together shall be one and the same instrument.

         9. RATIFICATION. The terms and provisions set forth in this Amendment
shall modify and supersede all inconsistent terms and provisions of the
Agreement and shall not be deemed to be a consent to the modification or waiver
of any other term or condition of the Agreement. Except as expressly modified
and superseded by this Amendment, the terms and provisions of the Agreement are
ratified and confirmed and shall continue in full force and effect.

                   [Signatures appear on the following pages.]

                                       6
<PAGE>

         IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be
duly executed under seal and delivered by their respective duly authorized
officers on the date first written above.

                          LUND INTERNATIONAL HOLDINGS, INC.
                          LUND INDUSTRIES, INCORPORATED
                          DEFLECTA-SHIELD CORPORATION
                          BELMOR AUTOTRON CORP.
                          DFM CORP.
                          LUND ACQUISITION CORP.
                          BAC ACQUISITION CO.
                          TRAILMASTER PRODUCTS, INC.
                          DELTA III, INC.
                          AUTO VENTSHADE COMPANY
                          SMITTYBILT, INC.
                          VENTSHADE HOLDINGS, INC.

                          For each of the foregoing corporations:

                          By:  /s/Edmund J. Schwartz
                          Name: Edmund J. Schwartz
                          Title:  Chief Financial Officer

                          HELLER FINANCIAL, INC.,
                          in its capacity as Agent and a Lender

                          By:  /s/ Patricia Weitzman
                          Name:  Patricia Weitzman
                          Title:  Senior Vice President

                          DRESDNER BANK AG, NEW YORK AND
                          GRAND CAYMAN BRANCHES,
                          as a Lender

                          By: /s/ Ben Marzouk
                          Name: Ben Marzouk
                          Title:  Vice President, Leveraged Finance

                          LASALLE BANK NATIONAL ASSOCIATION,
                          as a Lender

                          By:  /s/ Kristen J. Lindbergh
                          Name:  Kristen J. Lindbergh
                          Title:  Corporate Banking Officer, Leveraged Finance

                                       7
<PAGE>

                          THE PRUDENTIAL INSURANCE COMPANY
                          OF AMERICA, as a Lender

                          By:  /s/  Marie Fioramonti
                          Name:  Marie Fioramonti
                          Title:  Vice President

                          IBJ WHITEHALL BANK & TRUST COMPANY,
                          as a Lender

                          By:  /s/  Mark Weitekamp
                          Name:  Mark Weitekamp
                          Title:  Director

                          KEY CORPORATE CAPITAL, INC.,
                          as a Lender

                          By:  /s/  Jay R. McKenney
                          Name:  Jay R. McKenney
                          Title:  Vice President

                          FIRST UNION NATIONAL BANK, as a Lender

                          By:  /s/  Andrew Payne
                          Name:  Andrew Payne
                          Title:  Vice President

                          FIRST SOURCE FINANCIAL LLP, as a Lender
                          By:  First Source Financial, Inc., its Agent/Manager

                          By:  /s/  Robert Horak
                          Name:  Robert Horak
                          Title:  Vice President

                          SENIOR DEBT PORTFOLIO, as a Lender
                          By:  Boston Management and Research, Inc., as
                          Investment Advisor

                          By:  /s/  Payson F. Swaffield
                          Name:  Payson F. Swaffield
                          Title:  Vice President

                          ARCHIMEDES FUNDING LLC, as a Lender
                          By:  ING Capital Advisors, Inc., as Collateral Manager

                          By:  /s/  Helen Y. Rhee
                          Name:  Helen Y. Rhee
                          Title:  Vice President & Portfolio Manager

                                        8
<PAGE>

                                   TORONTO DOMINION (TEXAS), as a Lender

                                   By:______________________________
                                   Name:____________________________
                                   Title:_____________________________

                                        9
<PAGE>

                                                                    EXHIBIT B TO
                                                                  EXHIBIT 4.7(D)

                             COMPLIANCE CERTIFICATE

                                   BORROWERS:

                           DEFLECTA-SHIELD CORPORATION
                          LUND INDUSTRIES, INCORPORATED
                              BELMOR AUTOTRON CORP.
                                    DFM CORP.
                             AUTO VENTSHADE COMPANY
                                SMITTYBILT, INC.

                           DATE: __________ __, _____

                               COVENANT 4.3 EBITDA

EBITDA is defined as follows:

Net income (or loss) for the period of Holdings, Borrower
and their Subsidiaries on a consolidated basis determined in
accordance with GAAP, but excluding: (a) the income (or
loss) of any Person (other than wholly-owned Subsidiaries of
Holdings) in which Holdings or a Borrower or a wholly-owned
subsidiary of Holdings or a Borrower has an ownership
interest unless received by Holdings, a Borrower or such
Subsidiary in a cash distribution during such period; and
(b) the income (or loss) of any Person accrued prior to the
date it became a Subsidiary of a Loan Party or is merged
into or consolidated with a Loan                                     $__________

Plus:    Any provision for (or less any benefit from) income
         and franchise taxes included in the determination
         of net income                                               ___________

         Interest expense deducted in the determination of
         net income                                                  ___________

         Amortization and depreciation deducted in
         determining net income                                      ___________

         Losses (or less gains) from Asset Dispositions or
         other non-cash items included in the determination
         of net income (excluding sales, expenses or losses
         related to current assets)                                  ___________

                                       10
<PAGE>

                                                                    EXHIBIT B TO
                                                                  EXHIBIT 4.7(D)

                             COMPLIANCE CERTIFICATE

                                   BORROWERS:

                           DEFLECTA-SHIELD CORPORATION
                          LUND INDUSTRIES, INCORPORATED
                              BELMOR AUTOTRON CORP.
                                    DFM CORP.
                             AUTO VENTSHADE COMPANY
                                SMITTYBILT, INC.

                            DATE: _________ __, _____

                         COVENANT 4.3 EBITDA (CONTINUED)

         Extraordinary losses (or less gains), as defined
         under GAAP, net of related tax effects                      ___________

         Expenses of the Related Transactions included in
         the determination of net income provided that such
         expenses were included in the Pro Forma, or
         disclosed in the notes thereto                              ___________

         "Restructuring Charges" set forth on the attached
         Schedule I for Fiscal Years 2000 and 2001, on a
         trailing twelve month basis, not to exceed $4.1MM
         in the aggregate. (To be included only in those
         Compliance Certificates covering periods ending on
         or before December 31, 2002.)                               ___________

Less:    Expenditures pursuant to the last sentence of
         subsection 4.8 applicable to, but not included in,
         the Pro Forma; including expenditures during the
         period made in connection with the Related
         Transactions and payment of liabilities existing on
         the Closing Date                                            ___________

EBITDA                                                               $
                                                                      ==========

Required EBITDA                                                      $
                                                                      ==========

In Compliance                                                        Yes/No

                                       11
<PAGE>

                                                                    EXHIBIT B TO
                                                                  EXHIBIT 4.7(D)

                             COMPLIANCE CERTIFICATE

                                   BORROWERS:

                           DEFLECTA-SHIELD CORPORATION
                          LUND INDUSTRIES, INCORPORATED
                              BELMOR AUTOTRON CORP.
                                    DFM CORP.
                             AUTO VENTSHADE COMPANY
                                SMITTYBILT, INC.

                            DATE: _________ __, _____

                    COVENANT 4.6 TOTAL INDEBTEDNESS TO EBITDA

Total Indebtedness:

Average daily principal balance of the Revolving
Loans for the one month period ending on the date
set forth above                                                      $__________

Plus:    Outstanding principal balance of the Term Loan[S]           ___________

         Outstanding principal balance of all other
         Indebtedness                                                ___________

Total Indebtedness                                                   $
                                                                      ==========

Operating Cash Flow (calculated in the manner required by
subsection 4.4)                                                      $
                                                                      ==========

Total Indebtedness to Operating Cash Flow Ratio                      ____ to ___

Required Total Indebtedness to Operating Cash Flow Ratio             _________

In Compliance                                                        Yes/No

                                       12
<PAGE>

                                   SCHEDULE I
                                       TO
                             COMPLIANCE CERTIFICATE

                                   BORROWERS:
                           DEFLECTA-SHIELD CORPORATION
                          LUND INDUSTRIES, INCORPORATED
                              BELMOR AUTOTRON CORP.
                                    DFM CORP.
                             AUTO VENTSHADE COMPANY
                                SMITTYBILT, INC.
                            DATE: __________ __, ____

                         RESTRUCTURING CHARGES (ACTUAL)

<TABLE>
<CAPTION>
---------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- -------------

Type of          FQ ending     FQ ending     FQ ending     FQ ending     FQ ending     FQ ending     FQ ending     FQ ending
Charge           03-31-00      06-30-00      09-30-00      12-31-00      03-31-01      06-30-01      09-30-01      12-31-01

---------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- -------------
<S>              <C>           <C>           <C>           <C>           <C>           <C>           <C>           <C>
Severance/Stay
Pay
---------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- -------------
Training
---------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- -------------
Building
Clean-up/
Retrofit
---------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- -------------
Employee
Relocation
---------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- -------------
Inventory
Relocation
---------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- -------------
Mold
Transportation
---------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- -------------
Refurbish
Molds/
Tooling
---------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- -------------
Facility
Set-up Costs
---------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- -------------
Consulting
---------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- -------------
Asset
Write-Offs
---------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- -------------
Lease Buyout
---------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- -------------
Continuing
Costs
---------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- -------------
SUBTOTALS
---------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- -------------
</TABLE>

                               TOTAL $
                                      ===========

                                       13
<PAGE>

                             SCHEDULE I (CONTINUED)
                                       TO
                             COMPLIANCE CERTIFICATE

                                   BORROWERS:
                           DEFLECTA-SHIELD CORPORATION
                          LUND INDUSTRIES, INCORPORATED
                              BELMOR AUTOTRON CORP.
                                    DFM CORP.
                             AUTO VENTSHADE COMPANY
                                SMITTYBILT, INC.
                            DATE: __________ __, ____

                        RESTRUCTURING CHARGES (PROJECTED)

<TABLE>
<CAPTION>
---------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- -------------

Type of          FQ ending     FQ ending     FQ ending     FQ ending     FQ ending     FQ ending     FQ ending     FQ ending
Charge           03-31-00      06-30-00      09-30-00      12-31-00      03-31-01      06-30-01      09-30-01      12-31-01

---------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- -------------
<S>              <C>           <C>           <C>           <C>           <C>           <C>           <C>           <C>
Severance/Stay
Pay
---------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- -------------
Training
---------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- -------------
Building
Clean-up/
Retrofit
---------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- -------------
Employee
Relocation
---------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- -------------
Inventory
Relocation
---------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- -------------
Mold
Transportation
---------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- -------------
Refurbish
Molds/
Tooling
---------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- -------------
Facility
Set-up Costs
---------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- -------------
Consulting
---------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- -------------
Asset
Write-Offs
---------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- -------------
Lease Buyout
---------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- -------------
Continuing
Costs
---------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- -------------
SUBTOTALS
---------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- -------------
</TABLE>

                               TOTAL $
                                      ===========

                                       14EXHIBIT 10.6

                        SEPARATION AGREEMENT AND RELEASE

         This Separation Agreement and Release ("Agreement") is made by and
between Secure Computing Corporation (the "Company") and Jeffrey H. Waxman
("Employee").

         WHEREAS, Employee and the Company mutually agree that Employee's
employment as Chief Executive Officer of the Company shall be terminated
effective on June 30, 1999; and hereby resigns as a member of the Board of
Directors of the Company, effective the same date; and

         WHEREAS, Employee does not have pending against the Company any claim,
charge, or action in or with any federal, state, or local court or
administrative agency; and

         WHEREAS, Employee and the Company desire to settle fully and finally
all differences between them.

         NOW THEREFORE, in consideration of the mutual promises made herein, the
Company and Employee (collectively referred to as "the Parties") hereby agree as
follows:

         1. Resignation. Employee agrees to resign from employment as Chief
Executive Officer of the Company and to resign as a Director of the Company,
effective June 30, 1999. The Company shall issue a press release stating that
Employee is resigning for personal reasons.

         2. Consideration. The Company agrees to pay Employee nine (9) months of
base salary, less applicable withholdings. This amount will be paid as a lump
sum payment no later than July 9, 1999. The Company shall also reimburse
Employee for any outstanding expense reports. In addition, for a period of
twelve (12) months commencing July 1, 1999, the Company shall pay for office
space for Employee in an amount not to exceed $2,000 per month.

         3. Continued Benefits. Employee's medical benefits will be paid through
the end of June. Employee will be notified of his rights to continue benefits
for up to eighteen (18) months under COBRA.

         4. Stock Options. The exercise of any stock options shall continue to
be subject to the terms and conditions of the Company's Stock Option Plan and
the applicable Stock Option Agreement between Employee and the Company.

         5. Payment of Salary. Employee acknowledges and represents that the
Company has paid all salary, wages, bonuses, accrued vacation, commissions and
any and all other benefits due to Employee.

         6. Indemnification of Employee. To the extent permitted by law, the
Company will provide Employee indemnity, in accordance with the applicable
provisions of the Company's Articles of Incorporation and its By-Laws, and will
cover Employee under any directors and officers liability insurance policy
maintained by the Company for directors and officers, against all expense,
liability and loss (including attorneys' fees and settlement payments) that
Employee may incur by reason of any action, suit or proceeding arising from or
relating to his position as an employee, officer or director of the Company.
Employee will cooperate with the Company in the defense of any such matters.

         7. Mutual Release. (a) Employee, on behalf of himself, and his heirs,
family members, executors and assigns, hereby releases and forever discharges
Company, and its executors, officers,

<PAGE>

directors, employees, investors, shareholders, administrators, affiliates,
divisions, subsidiaries, predecessor and successor corporations, from any and
all existing claims, liens, demands, causes of action, obligations, damages and
liabilities, known or unknown, that Employee ever had, now has or may hereafter
claim to have against them, arising directly or indirectly out of, or in any way
connected with or based upon, or related in any way to his employment with the
Company or his termination therefrom including any and all claims for violation
of any federal, state or municipal statute, including, but not limited to, Title
VII of the Civil Rights Act of 1964; the Civil Rights Act of 1991; the Age
Discrimination in Employment Act of 1967; the Americans with Disabilities Act of
1990; the Fair Labor Standards Act; the Employee Retirement Income Security Act
of 1974; The Worker Adjustment and Retraining Notification Act; the Older
Workers Benefit Protection Act; the California Civil Code; the California Fair
Employment and Housing Act and Labor Code section 201, ET SEQ. and section 970,
ET SEQ.; and

         (b) Company, on behalf of itself and its executors, officers,
directors, employees, investors, shareholders, administrators, affiliates,
divisions, subsidiaries, predecessor and successor corporations, and assigns,
hereby releases and forever discharges Employee, and his heirs, family members,
executors and assigns, from any and all claims, liens, demands, causes of
action, obligations, damages and liabilities, known or unknown, that Company
ever had, now has or may hereafter claim to have against his or them arising
directly or indirectly out of, or in any way connected with or based upon, or
related in any way to his employment with the Company or his termination
therefrom;

         (c) except that neither Employee nor the Company releases each other
from any claims, liens, demands, causes of action, obligations, damages and
liabilities, known or unknown, arising from, related or connected to, directly
or indirectly, present or future claims of securities fraud, breach of fiduciary
duty or similar claims against the Company and its officers and directors,
including, by way of illustration and not limitation, the causes of action as
stated in Myron Goldstein vs. Secure Computing Corporation, et al (U. S. Dist.
Court, ND Calf., C.99-20279), including any derivative actions.

         Employee and Company agree that the release set forth in this section
shall be and remain in effect in all respects as a complete general release as
to the matters released. This release does not extend to any obligations
incurred under this Agreement.

         8. Acknowledgment of Waiver of Claims under ADEA. Employee acknowledges
that he is waiving and releasing any rights he may have under the Age
Discrimination in Employment Act of 1967 ("ADEA") and that this waiver and
release is knowing and voluntary. Employee and the Company agree that this
waiver and release does not apply to any rights or claims that may arise under
ADEA after the Effective Date of this Agreement. Employee acknowledges that the
consideration given for this waiver and release Agreement is in addition to
anything of value to which Employee was already entitled. Employee further
acknowledges that he has been advised by this writing that (a) he should consult
with an attorney prior to executing this Agreement; (b) he has at least
twenty-one (21) days within which to consider this Agreement; (c) he has at
least seven (7) days following the execution of this Agreement by the parties to
revoke the Agreement; and (d) this Agreement shall not be effective until the
revocation period has expired.

         9. California Civil Code Section 1542. Employee represents that he is
not aware of any claim other than the claims that are released by this
Agreement. Employee acknowledge that he has been advised by legal counsel and is
familiar with the provisions of California Civil Code Section 1542, which
provides as follows:

                  A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH
                  THE CREDITOR DOES NOT KNOW OR SUSPECT TO EXIST IN
                  HIS FAVOR AT THE TIME OF EXECUTING THE RELEASE,
                  WHICH IF

                                       2
<PAGE>

                  KNOWN BY HIM MUST HAVE MATERIALLY AFFECTED HIS
                  SETTLEMENT WITH THE DEBTOR.

         Employee, being aware of said Code section, agrees to expressly waive
any rights he may have thereunder, as well as under any other statute or common
law principles of similar effect.

         10. No Future Lawsuits. Employee represents that he has no lawsuits,
claims, or actions pending in his name, or on behalf of any other person or
entity, against the Company or any other person or entity referred to herein.
Employee also represents that he does not intend to bring any claims on his own
behalf or on behalf of any other person or entity against the Company or any
other person or entity referred to herein.

         11. Confidentiality. The Parties hereto agree to use their best efforts
to maintain in confidence the existence of this Agreement, the contents and
terms of this Agreement, and the consideration for this Agreement (hereinafter
collectively referred to as "Settlement Information"). The Parties hereto agree
to take every reasonable precaution to prevent disclosure of any Settlement
Information to third parties except as required by law, and agree that there
will be no publicity, directly or indirectly, concerning any Settlement
Information. The Parties hereto agree to take every precaution to disclose
Settlement Information only to those attorneys, accountants, governmental
entities, and family members who have a reasonable need to know of such
Settlement Information.

         12. No Cooperation. Employee agrees that he will not counsel or assist
any attorneys or their clients in the presentation or prosecution of any
disputes, differences, grievances, claims, charges, or complaints by any third
party against the Company and/or any officer, director, employee, agent,
representative, shareholder or attorney of the Company, unless under a subpoena
or other court order to do so.

         13. Non-Disparagement. Each Party agrees to refrain from any
defamation, libel or slander of the other, or tortious interference with each
other's contracts and relationships. The Company will make all reasonable
efforts to insure that its officers, directors and employees comply with this
provision of this Agreement. All inquiries by potential future employers of
Employee will be directed to the Company's Director of Human Resources. Upon
inquiry, the Company shall only state the following: Employee 's last position
and dates of employment.

         14. No Admission of Liability. Employee understands and acknowledges
that this Agreement constitutes a compromise and settlement of disputed claims.
No action taken by the Company hereto, either previously or in connection with
this Agreement, shall be deemed or construed to be (a) an admission of the truth
or falsity of any claims heretofore made or (b) an acknowledgment or admission
by the Company of any fault or liability whatsoever to Employee or to any third
party.

         15. Costs. The Parties shall each bear their own costs, expert fees,
attorneys' fees and other fees incurred in connection with this Agreement,
except as provided in paragraph 2 herein.

         16. Tax Consequences. The Company makes no representations or
warranties with respect to the tax consequences of the payment of any sums to
Employee under the terms of this Agreement. Employee agrees and understands that
he is responsible for payment, if any, of local, state and/or federal taxes on
the sums paid hereunder by the Company and any penalties or assessments thereon.

         17. Arbitration. The Parties agree that any and all disputes arising
out of the terms of this Agreement, their interpretation, and any of the matters
herein released, shall be subject to binding arbitration in Santa Clara County,
California before the American Arbitration Association under its California

                                       3
<PAGE>

Commercial Dispute Resolution Rules, or by a judge to be mutually agreed upon.
The Parties agree that the prevailing party in any arbitration shall be entitled
to injunctive relief in any court of competent jurisdiction to enforce the
arbitration award. The Parties agree that the prevailing party in any
arbitration shall be awarded its reasonable attorney's fees and costs. Employee
expressly acknowledges that he is waiving any right to a jury trial for any and
all claims covered by this Agreement.

         18. Solicitation of Employees. Employee agrees that he will not, for a
period of six (6) months immediately following the Effective Date of this
Agreement, by himself or in collaboration with others, either directly or
indirectly initiate contact to solicit or recruit any of the Company's employees
to leave their employment, or take away such employees, or attempt to solicit,
recruit, or take away employees of the Company, either for himself or any other
person or entity.

         19. Returning Company Documents. Employee agrees on the Effective Date
of this Agreement, he shall deliver to the Company (and will not keep in his
possession, recreate or deliver to anyone else) any and all devices, records,
data, notes, reports, proposals, lists, correspondence, specifications, drawings
blueprints, sketches, materials, equipment, other documents or property, or
reproductions of any aforementioned items developed by Employee during the
course of his employment with the Company or otherwise belonging to the Company,
its successors or assigns.

         20. Company Confidential Information. Employee acknowledges that the
confidentiality provisions stated in the November 4, 1996 Secure Computing
Corporation Employment Agreement continue to be in full force and effect.

         21. Authority. The Company represents and warrants that the undersigned
has the authority to act on behalf of the Company and to bind the Company and
all who may claim through it to the terms and conditions of this Agreement.
Employee represents and warrants that he has the capacity to act on his own
behalf and on behalf of all who might claim through him to bind them to the
terms and conditions of this Agreement. Each Party warrants and represents that
there are no liens or claims of lien or assignments in law or equity or
otherwise of or against any of the claims or causes of action released herein.

         22. No Representations. Employee represents that he has had the
opportunity to consult with an attorney, and has carefully read and understands
the scope and effect of the provisions of this Agreement. Employee has not
relied upon any representations or statements made by the Company which are not
specifically set forth in this Agreement.

         23. Severability. In the event that any provision hereof becomes or is
declared by a court of competent jurisdiction to be illegal, unenforceable or
void, this Agreement shall continue in full force and effect without said
provision.

         24. Entire Agreement. This Agreement represents the entire agreement
and understanding between the Company and Employee concerning Employee's
separation from the Company and the events leading thereto and associated
therewith, and supersedes and replaces any and all prior agreements and
understandings concerning Employee's relationship with the Company and his
compensation by the Company.

         25. No Oral Modification. This Agreement may only be amended in writing
signed by Employee and the Compensation Committee of the Board of Directors.

         26. Governing Law. This Agreement shall be governed by the laws of the
State of California.

                                       4
<PAGE>

         27. Effective Date. This Agreement is effective seven days after it has
been signed by both parties, provided Employee has not revoked the Agreement
prior to that date, and provided Employee has returned an executed Agreement to
the Company.

         28. Counterparts. This Agreement may be executed in counterparts, and
each counterpart shall have the same force and effect as an original and shall
constitute an effective, binding agreement on the part of each of the
undersigned.

         29. Voluntary Execution of Agreement. This Agreement is executed
voluntarily and without any duress or undue influence on the part or behalf of
the Parties hereto, with the full intent of releasing all claims. The Parties
acknowledge that:

         (a)      They have read this Agreement;

         (b)      They have been represented in the preparation, negotiation,
                  and execution of this Agreement by legal counsel of their own
                  choice or that they have voluntarily declined to seek such
                  counsel;

         (c)      They understand the terms and consequences of this Agreement
                  and of the releases it contains;

         (d)      They are fully aware of the legal and binding effect of this
                  Agreement.

         IN WITNESS WHEREOF, the Parties have executed this Agreement on the
respective dates set forth below.

                                       SECURE COMPUTING CORPORATION

Dated: June 30, 1999                   By: /s/ John McNulty
                                           ---------------------

                                       JEFFREY H. WAXMAN

Dated: June 26, 1999                   By: /s/ Jeffrey H. Waxman
                                           ---------------------

                                       5

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