Document:

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                                                                   EXHIBIT 10.13

                              DIGITAL IMPACT, INC.
                            177 BOVET ROAD, SUITE 200
                               SAN MATEO, CA 94402

January 1, 2001

[Executive]
c/o Digital Impact, Inc.
177 Bovet Road, Suite 200
San Mateo, CA 94402

                               RETENTION AGREEMENT

Dear [Executive]:

       Digital Impact, Inc. and its subsidiaries (collectively, the "COMPANY")
considers it essential to the best interests of its stockholders to foster the
continuous employment of key management personnel. Further, the Board of
Directors of the Company (the "BOARD") recognizes that the possibility of a
change in control exists, and that such possibility, and the uncertainty and
questions that it may raise among management, may result in the departure or
distraction of management personnel to the detriment of the Company and its
stockholders.

       The Board has determined that appropriate steps should be taken to
reinforce and encourage the continued attention and dedication of members of the
management of the Company, including you, to their assigned duties without
distraction in the face of potentially disturbing circumstances arising from any
possible change in control of the Company.

       In order to induce you to remain in the employ of the Company, the
Company agrees that you will receive the benefits set forth in this letter
agreement (this "AGREEMENT") in the event your employment with the Company is
terminated following a Change in Control (as defined on Schedule A) under the
circumstances described below.

       1. TERMINATION FOLLOWING CHANGE IN CONTROL. If a Change in Control
occurs, you will be entitled to the benefits provided in Section 2 hereof upon
the subsequent termination of your employment by the Company without Cause (as
defined on Schedule A) or by you for Good Reason (as defined on Schedule A)
during the nine-month period following such Change in Control (the "COVERED
Period"). Any purported termination of your employment by the Company or by you
shall be communicated by a Notice of Termination to the other party hereto in
accordance with Section 6(e) hereof. For purposes of this Agreement, a "NOTICE
OF TERMINATION" shall mean a written notice which shall indicate the specific
termination provision in this Agreement relied upon and shall set forth in
reasonable detail the facts and circumstances claimed to provide a basis for
termination of your employment under the provision so indicated.

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       2. COMPENSATION UPON TERMINATION.

       (a) Severance Benefits. If your employment by the Company is terminated
during the Covered Period by the Company without Cause or by you for Good
Reason, then you shall be entitled to the following benefits:

              (i) Severance. The Company shall pay you in a cash lump sum within
       fifteen (15) days following the effective date of your termination of
       employment (the "DATE OF TERMINATION") the full amount of any earned but
       unpaid base salary through the Date of Termination, plus a cash payment
       for all bonuses and sales commissions earned but unpaid (as reasonably
       determined by the Company) and unused vacation time which you may have
       accrued as of the Date of Termination. In addition, the Company shall pay
       you in a cash lump sum, within fifteen (15) days following the Date of
       Termination, an amount (the "SEVERANCE PAYMENT") equal to six (6) months
       of your annual base salary on the Termination Date (without giving effect
       to any salary reductions which constitute Good Reason). The Severance
       Payment shall be in lieu of any other severance payments which you are
       entitled to receive under any other severance pay plan or arrangement
       sponsored by the Company or any of its subsidiaries.

              (ii) Benefit Continuation. You and your eligible dependents may
       elect to continue group health, dental and vision coverage under the
       Consolidated Omnibus Budget Reconciliation Act of 1985, as amended
       ("COBRA"). Provided that you and/or your eligible dependents are eligible
       for and elect continuation coverage pursuant to COBRA, the Company will
       reimburse you and your eligible dependents for COBRA premiums until the
       earlier of (i) six (6) months from the termination date; or (ii) the date
       you or your dependents, as applicable, are no longer eligible to receive
       continuation coverage pursuant to COBRA. You and your dependents shall be
       responsible for payment of your COBRA premiums for the remaining COBRA
       period.

       (b) Equity. If your employment is terminated during the Covered Period by
the Company without Cause or by you for Good Reason, your unvested Company stock
options or shares of Company common stock shall become vested in an amount equal
to the number of such options and shares that would have otherwise vested had
your employment continued for a period of twelve (12) months following your Date
of Termination.

       (c) No Mitigation. You shall not be required to mitigate the amount of
any payment or benefit provided for in this Section 2 by seeking other
employment or otherwise.

       (d) Withholding. All payments and benefits will be subject to applicable
withholding.

       3. CERTAIN LIMITATIONS.

       (a) Pooling-of-Interests Accounting. In the event of a merger or
consolidation of the Company with another entity which is intended to qualify
for pooling-of-interests accounting under United States Generally Accepted
Accounting Principles pursuant to Accounting Principles Board Opinion No. 16 or
any successor opinion, and the Company's independent accountants determines, by
written opinion delivered to the Board, that a payment or benefit hereunder
would prohibit the merger or consolidation from qualifying for treatment as a
pooling-of-interests transaction, then such payment or benefit shall be reduced
to the extent necessary, in

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the opinion of the Company's independent accountants, for the transaction to
achieve such accounting treatment.

       (b) Golden Parachute Excise Taxes. Notwithstanding anything herein to the
contrary, if any payment or benefit hereunder or otherwise payable to you
constitutes a "parachute payment" (as defined in Section 280G(b)(2) of the
Internal Revenue Code of 1986, as amended (the "CODE")), and the net after-tax
amount of any such parachute payment is less than the net after-tax amount if
the aggregate payments and benefits to be made to you were three times your
"base amount" (as defined in Section 280G(b)(3) of the Code), less $1.00, then
the aggregate of the amounts constituting the parachute payments shall be
reduced to an amount equal to three times your base amount, less $1.00. The
determinations to be made with respect to this Section 3(b) (other than any
determination as to which parachute payments shall be reduced, which shall be
made by you in your sole discretion) shall be made by the Company's independent
accountants, which shall be paid by the Company for the services to be provided
hereunder. For purposes of making the calculations required by this Section, the
accountants may make reasonable, good faith interpretations concerning the
application of Sections 280G and 4999 of the Code. You and the Company shall
furnish to the accountants such information and documents as the accountants may
reasonably request in order to make a determination under this Section.

       4. SUCCESSORS; BINDING AGREEMENT.

       (a) Assumption by Successor. The Company will require any successor
(whether direct or indirect, by purchase, merger, consolidation or otherwise) to
all or substantially all of the business or assets of the Company to expressly
assume and agree to perform this Agreement in the same manner and to the same
extent that the Company would be required to perform it if no such succession
had taken place. Failure of the Company to obtain such assumption and agreement
prior to the effectiveness of any such succession shall be a breach of this
Agreement and shall entitle you to compensation from the Company in the same
amount and on the same terms as you would be entitled hereunder if you had
terminated your employment for Good Reason following a Change in Control, except
that for purposes of implementing the foregoing, the date on which any such
succession becomes effective shall be deemed the Date of Termination. As used in
this Agreement, "the Company" shall mean the Company as hereinbefore defined and
any successor to its business or assets which assumes and agrees to perform this
Agreement by operation of law, by agreement or otherwise.

       (b) Enforceability by Beneficiaries. This Agreement shall inure to the
benefit of and be enforceable by your personal or legal representatives,
executors, administrators, successors, heirs, distributees, devisees and
legatees. If you should die while any amount would still be payable to you
hereunder if you had continued to live, all such amounts, unless otherwise
provided herein, shall be paid in accordance with the terms of this Agreement to
your devisee, legatee or other designee or, if there is no such designee, to
your estate.

       5. ARBITRATION.

       (a) Procedure. Any dispute or controversy arising out of, relating to, or
in connection with this Agreement, or the interpretation, validity,
construction, performance, breach, or termination thereof, shall be settled by
binding arbitration to be held in San Mateo County, California, in accordance
with the National Rules for the Resolution of Employment Disputes then in effect
of the American Arbitration Association (the "RULES"). The arbitrator may grant

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injunctions or other relief in such dispute or controversy. The decision of the
arbitrator shall be final, conclusive and binding on the parties to the
arbitration. Judgment may be entered on the arbitrator's decision in any court
having jurisdiction. The arbitrator(s) shall apply California law to the merits
of any dispute or claim, without reference to conflicts of law rules. The
arbitration proceedings shall be governed by federal arbitration law and by the
Rules, without reference to state arbitration law. You hereby consent to the
personal jurisdiction of the state and federal courts located in California for
any action or proceeding arising from or relating to this Agreement or relating
to any arbitration in which the parties are participants.

       (b) At-Will Employment. You understand that nothing in this Section
modifies your at-will employment status. Either party can terminate the
employment relationship at any time, with or without Cause.

       (c) Acknowledgment. You have read and understand this Section, which
discusses arbitration. You understand that submitting any claims arising out of,
relating to, or in connection with this Agreement, or the interpretation,
validity, construction, performance, breach or termination thereof to binding
arbitration, constitutes a waiver of your right to a jury trial and relates to
the resolution of all disputes relating to all aspects of the employer/employee
relationship, including, but not limited to, the following claims:

              (i) Any and all claims for wrongful discharge of employment,
       breach of contract, both express and implied, breach of the covenant of
       good faith and fair dealing, both express and implied, negligent or
       intentional infliction of emotional distress, negligent or intentional
       misrepresentation, negligent or intentional interference with contract or
       prospective economic advantage and defamation.

              (ii) 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 California Fair Employment and Housing
       Act, and Labor Code Section 201, et seq; and

              (iii) Any and all claims arising out of any other laws and
       regulations relating to employment or employment discrimination.

       6. MISCELLANEOUS.

       (a) Amendments; Waivers. No provision of this Agreement may be modified,
waived or discharged unless such waiver, modification or discharge is agreed to
in writing. No waiver by either party hereto at any time of any breach by the
other party hereto of, or compliance with, any condition or provision of this
Agreement to be performed by such other party shall be deemed a waiver of
similar or dissimilar provisions or conditions at the same or at any prior or
subsequent time.

       (b) Entire Agreement. No agreements or representations, oral or
otherwise, express or implied, with respect to the subject matter hereof have
been made by either party that are not expressly set forth in this Agreement and
this Agreement shall supersede all prior agreements, negotiations,
correspondence, undertakings and communications of the parties, oral or written,
with respect to the subject matter hereof.

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       (c) Governing Law. The validity, interpretation, construction and
performance of this Agreement shall be governed by the laws of the State of
California.

       (d) Validity. The invalidity or unenforceability of any provision of this
Agreement shall not affect the validity or enforceability of any other provision
of this Agreement, which shall remain in full force and effect.

       (e) Notice. For the purpose of this Agreement, notices and all other
communications provided for in the Agreement shall be in writing and shall be
deemed to have been duly given when delivered or mailed by United States
registered mail, return receipt requested, postage prepaid, addressed to Digital
Impact, Inc., 177 Bovet Road, Suite 200, San Mateo, CA 94402; Attn.: General
Counsel, or to you at your address as set forth in the records of the Company,
or to such other address as either party may furnish to the other in writing in
accordance herewith, except that notice of change of address shall be effective
only upon receipt.

       (f) Counterparts. This Agreement may be executed in several counterparts,
each of which shall be deemed to be an original but all of which together will
constitute one and the same instrument.

       (g) No Contract of Employment. Nothing in this Agreement shall be
construed as giving you any right to be retained in the employ of the Company or
any subsidiary.

       (h) Headings. The headings contained in this Agreement are intended
solely for convenience and shall not affect the rights of the parties to this
Agreement.

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       If this letter sets forth our agreement on the subject matter hereof,
kindly sign and return to the Company the enclosed copy of this letter which
will then constitute our agreement on this subject.

Sincerely,

DIGITAL IMPACT, INC.

By:
   ---------------------------------
   William C. Park
   Chief Executive Officer

AGREED:

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Signature

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Print Name

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Date

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                                   SCHEDULE A

                                   DEFINITIONS

       "CAUSE" shall mean the willful engaging by you in criminal or fraudulent
acts or gross misconduct that is demonstrably and materially injurious to the
Company, monetarily or otherwise. No act or failure to act on your part shall be
deemed "willful" unless done or omitted to be done by you not in good faith and
without reasonable belief that your action or omission was in the best interest
of the Company. Notwithstanding the foregoing, you shall not be deemed to have
been terminated for Cause unless and until there shall have been delivered to
you a copy of a resolution duly adopted by the affirmative vote of not less than
three quarters (3/4) of the entire membership of the Board at a meeting of the
Board called and held for such purpose (after reasonable notice to you and an
opportunity for you, together with your counsel, to be heard before the Board),
finding that in the good faith opinion of the Board you were guilty of conduct
set forth above in the first sentence of this subsection and specifying the
particulars thereof in detail.

       "CHANGE IN CONTROL" shall mean the happening of any of the following:

              (i) The acquisition, other than from the Company, by any
       individual, entity or group (within the meaning of Section 13(d)(3) or
       14(d)(2) of the Securities Exchange Act of 1934, as amended (the
       "EXCHANGE ACT")) of beneficial ownership (within the meaning of Rule
       13d-3 promulgated under the Exchange Act) of 50% or more of the then
       outstanding shares of common stock of the Company; provided, however,
       that any acquisition by (x) the Company or any of its subsidiaries, (y)
       any employee benefit plan (or related trust) sponsored or maintained by
       the Company or any of its subsidiaries or (z) Institutional Venture
       Partners, Draper Fisher Jurvetson or any affiliate of either entity shall
       not constitute a Change in Control; or

              (ii) Individuals who, as of the date of this Agreement, constitute
       the Board (the "INCUMBENT BOARD") cease for any reason to constitute at
       least a majority of the Board, provided that any individual becoming a
       director subsequent to the date hereof whose election or nomination for
       election by the Company's shareholders was approved by a vote of at least
       a majority of the directors then comprising the Incumbent Board shall be
       considered as though such individual were a member of the Incumbent
       Board, but excluding, for this purpose, any such individual whose initial
       assumption of office is in connection with an actual or threatened
       election contest relating to the election of the directors of the Company
       (as such terms are used in Rule 14a-11 of Regulation 14A promulgated
       under the Exchange Act); or

              (iii) Completion of a reorganization, merger or consolidation (a
       "BUSINESS COMBINATION"), in each case, with respect to which all or
       substantially all of the individuals and entities who were the beneficial
       owners of the Company's common stock immediately prior to such Business
       Combination do not own, directly or indirectly, more than 50% of the
       combined voting power of the then outstanding voting securities entitled
       to vote generally in the election of directors of the corporation
       resulting from such Business Combination; or

              (iv) A complete liquidation or dissolution of the Company or a
       sale or other disposition of all or substantially all of the assets of
       the Company other than to a

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       corporation with respect to which, following such sale or disposition,
       owns more than 50% of the combined voting power of the then outstanding
       voting securities entitled to vote generally in the election of
       directors; or

       "GOOD REASON" shall mean, without your express written consent, any of
the following:

              (i) A material and detrimental alteration in your responsibilities
       from those in effect immediately prior to the Change in Control; or

              (ii) A reduction by the Company in your annual base salary as in
       effect on the date hereof or as the same may be increased from time to
       time; a reduction in your annual bonus target (expressed as a percentage
       of base salary) below the target in effect for you immediately prior to
       the Change in Control; or any adverse change in your long-term incentive
       opportunities in comparison to those in effect prior to the Change in
       Control; or

              (iii) The relocation of the office of the Company where you are
       employed at the time of the Change in Control to a location which is more
       than 35 miles away from such office or the Company's requiring you to be
       based more than 35 miles away from such office (except for required
       travel on the Company's business to an extent substantially consistent
       with your customary business travel obligations in the ordinary course of
       business prior to the Change in Control); or

              (iv) The failure by the Company to continue to provide you with
       benefits at least as favorable, in the aggregate, as those enjoyed by you
       under any of the Company's retirement, life insurance, medical, health
       and accident, disability or savings plans in which you were participating
       at the time of the Change in Control; or

              (v) The failure of the Company to obtain a satisfactory agreement
       from any successor to assume and agree to perform this Agreement, as
       contemplated in Section 4 hereof or, if the business of the Company for
       which your services are principally performed is sold at any time after a
       Change in Control, the purchaser of such business shall fail to agree to
       provide you with the same or a comparable duties, compensation and
       benefits as provided to you by the Company immediately prior to the
       Change in Control; or

              (vi) Any purported termination of your employment that is not
       effected pursuant to a Notice of Termination satisfying the requirements
       of Section 1 (and, if applicable, the requirements set out in the
       definition of "Cause"); for purposes of this Agreement, no such purported
       termination shall be effective.

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                                                                   EXHIBIT 10.14

                        SEVERANCE AGREEMENT AND RELEASE

       THIS SEVERANCE AGREEMENT AND RELEASE (this "AGREEMENT") is made by and
between James Wahlstrom (the "EXECUTIVE") and Digital Impact, Inc. (the
"COMPANY"; together with the Executive, the "PARTIES"):

       WHEREAS, the Executive was employed by the Company;

       WHEREAS, the Company and the Executive have entered into an Employee
Proprietary Information and Inventions Agreement (the "CONFIDENTIALITY
AGREEMENT");

       WHEREAS, the Executive's employment with the Company was terminated on or
about March 27, 2001 (the "TERMINATION DATE").

       WHEREAS, the Executive wishes to release the Company from any claims
arising from or related to the employment relationship;

       WHEREAS, the Parties, and each of them, wish to resolve any and all
disputes, claims, complaints, grievances, charges, actions, petitions and
demands that the Executive may have against the Company as defined herein,
including, but not limited to, any and all claims arising or in any way related
to the Executive's employment with, or separation from, the Company;

       NOW THEREFORE, in consideration of the promises made herein, the Parties
hereby agree as follows:

       1. Resignation. The Executive hereby resigns from his employment with the
Company and any other office he may hold with any subsidiary of the Company, as
of the Termination Date. The Executive shall execute any additional
documentation necessary to remove the Executive from any position he may have at
any such subsidiary and hereby grants the Company a power of attorney for the
purpose of executing any such document.

       2. Consideration.

              (a) Payment. The Company will tender the settlement amount to the
Executive by delivering a check for $65,625, less applicable withholding, made
payable to the Executive, within ten (10) business days following the Effective
Date of this signed Agreement, subject to the Executive not revoking this
Agreement or any release contained herein during any applicable statutory
post-signing revocation period.

              (b) Benefits. The Executive shall have the right to convert his
health insurance benefits to individual coverage pursuant to COBRA.

       3. Confidential Information. The Executive shall continue to maintain the
confidentiality of all confidential and proprietary information of the Company
and shall continue to comply with the terms and conditions of the
Confidentiality Agreement between the Executive and the Company. The Executive
shall return all of the Company's property and confidential and proprietary
information in his possession to the Company on the Effective Date of this
Agreement.

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       4. Payment of Salary. The Executive acknowledges and represents that the
Company has paid all salary, wages, bonuses, accrued vacation, commissions and
any and all other benefits due to the Executive once the above noted payments
and benefits are received.

       5. Release of Claims. The Executive agrees that the foregoing
consideration represents settlement in full of all outstanding obligations owed
to the Executive by the Company. The Executive, on his own behalf, and on behalf
of his respective heirs, family members, executors, and assigns, hereby fully
and forever releases the Company and its officers, directors, employees,
investors, shareholders, administrators, affiliates, divisions, subsidiaries,
predecessor and successor corporations, and assigns, from, and agree not to sue
concerning, any claim, duty, obligation or cause of action relating to any
matters of any kind, whether presently known or unknown, suspected or
unsuspected, that the Executive may possess arising from any omissions, acts or
facts that have occurred up until and including the Effective Date of this
Agreement including, without limitation:

              (a) any and all claims relating to or arising from the Executive's
employment relationship with the Company and the termination of that
relationship;

              (b) any and all claims relating to, or arising from, the
Executive's right to purchase, or actual purchase of shares of stock of the
Company, including, without limitation, any claims for fraud, misrepresentation,
breach of fiduciary duty, breach of duty under applicable state corporate law,
and securities fraud under any state or federal law;

              (c) any and all claims under the law of any jurisdiction
including, but not limited to, wrongful discharge of employment; constructive
discharge from employment; termination in violation of public policy;
discrimination; breach of contract, both express and implied; breach of a
covenant of good faith and fair dealing, both express and implied; promissory
estoppel; negligent or intentional infliction of emotional distress; negligent
or intentional misrepresentation; negligent or intentional interference with
contract or prospective economic advantage; unfair business practices;
defamation; libel; slander; negligence; personal injury; assault; battery;
invasion of privacy; false imprisonment; and conversion;

              (d) 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, Older Workers Benefit Protection
Act; the California Fair Employment and Housing Act, and Labor Code section 201,
et seq. and section 970, et seq.;

              (e) any and all claims for violation of the federal, or any state,
constitution;

              (f) any and all claims arising out of any other laws and
regulations relating to employment or employment discrimination;

              (g) any claim for any loss, cost, damage, or expense arising out
of any dispute over the non-withholding or other tax treatment of any of the
proceeds received by the Executive as a result of this Agreement; and

              (h) any and all claims for attorneys' fees and costs.

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       The Company and the Executive 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.

       The Executive acknowledges and agrees that any breach of any provision of
this Agreement shall constitute a material breach of this Agreement and shall
entitle the Company immediately to recover the severance benefits provided to
the Executive under this Agreement. The Executive shall also be responsible to
the Company for all costs, attorneys' fees and any and all damages incurred by
the Company (a) enforcing the obligation, including the bringing of any suit to
recover the monetary consideration, and (b) defending against a claim or suit
brought or pursued by the Executive in violation of this provision.

       6. Acknowledgement of Waiver of Claims Under ADEA. The Executive
acknowledges that he is waiving and releasing any rights he/she may have under
the Age Discrimination in Employment Act of 1967 ("ADEA") and that this waiver
and release is knowing and voluntary. The Executive 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. The Executive
acknowledges that the consideration given for this waiver and release is in
addition to anything of value to which the Executive was already entitled. The
Executive 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 up to twenty-one (21) days within which to consider
this Agreement;

              (c) he has seven (7) days following his execution of this
Agreement to revoke the Agreement;

              (d) this Agreement shall not be effective until the revocation
period has expired; and

              (e) nothing in this Agreement prevents or precludes the Executive
from challenging or seeking a determination in good faith of the validity of
this waiver under the ADEA, nor does it impose any condition precedent,
penalties or costs for doing so, unless specifically authorized by federal law.

       7. Civil Code Section 1542. The Executive represents that he is not aware
of any claim by the Company other than the claims that are released by this
Agreement. The Executive acknowledges 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 KNOWN BY HIM MUST HAVE MATERIALLY
              AFFECTED HIS SETTLEMENT WITH THE DEBTOR.

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<PAGE>   4

       The Executive, 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.

       8. No Pending or Future Lawsuits. The Executive 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. The Executive 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.

       9. Application for Employment. The Executive understands and agrees that,
as a condition of this Agreement, he shall not be entitled to any employment
with the Company and he hereby waives any right, or alleged right, of employment
or re-employment with the Company. The Executive further agrees that he will not
apply for employment with the Company.

       10. No Cooperation. The Executive agrees he will not act in any manner
that might damage the business of the Company. The Executive 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.

       11. Non-Disparagement. Each party agrees to refrain from any defamation,
libel or slander of the other party or tortious interference with the contracts
and relationships of the other party. All inquiries by potential future
employers of the Executive will be directed to the Company's Human Resources
Department. Upon inquiry, the Company shall only state the following: the
Executive's last position and dates of employment.

       12. Non-Solicitation. The Executive agrees that for a period of twelve
(12) months immediately following the Effective Date, the Executive shall not
either directly or indirectly solicit, induce, recruit or encourage any of the
Company's employees to leave their employment, or take away such employees, or
attempt to solicit, induce, recruit, encourage, take away or hire employees of
the Company, either for himself or any other person or entity.

       13. No Admission of Liability. The Parties understand and acknowledge
that this Agreement constitutes a compromise and settlement of disputed claims.
No action taken by the Parties hereto, or either of them, 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 either party of any fault or
liability whatsoever to the other party or to any third party.

       14. No Knowledge of Wrongdoing. The Executive represents that he has no
knowledge of any wrongdoing involving improper or false claims against a federal
or state governmental agency, or any other wrongdoing that involves the
Executive or other present or former Company employees.

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

       16. Indemnification. The Executive agreed to indemnify and hold harmless
the Company from and against any and all loss, costs, damages or expenses,
including, without limitation, attorneys' fees or expenses incurred by the
Company arising out of the breach of this Agreement by the Executive, or from
any false representation made herein by the Executive, or from any action or
proceeding which may be commenced, prosecuted or threatened by the Executive or
for the Executive's benefit, upon the Executive's initiative, or with the
Executive's aid or approval, contrary to the provisions of this Agreement. The
Executive further agrees that in any such action or proceeding, this Agreement
may be pled by the Company as a complete defense, or may be asserted by way of
counterclaim or cross-claim.

       17. 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.
Executive 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.

       18. No Representations. Each party represents that it 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. Neither party has
relied upon any representations or statements made by the other party hereto
which are not specifically set forth in this Agreement.

       19. 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 so long as the remaining provisions remain intelligible and continue
to reflect the original intent of the Parties.

       20. Entire Agreement. This Agreement, and the agreements incorporated
herein by reference to the extent they are consistent with this Agreement,
constitute the entire agreement and understanding between the Parties concerning
the subject matter of this Agreement and all prior representations,
understandings, and agreements concerning the subject matter of this Agreement
have been merged into this Agreement.

       21. No Waiver. The failure of any party to insist upon the performance of
any of the terms and conditions in this Agreement, or the failure to prosecute
any breach of any of the terms and conditions of this Agreement, shall not be
construed thereafter as a waiver of any such terms or conditions. This entire
Agreement shall remain in full force and effect as if no such forbearance or
failure of performance had occurred. 22. No Oral Modification. Any modification
or amendment of this Agreement, or additional obligation assumed by either party
in connection with this Agreement, shall be effective only if placed in writing
and signed by both Parties or by authorized representatives of each party. No

                                      -5-
<PAGE>   6

provision of this Agreement can be changed, altered, modified, or waived except
by an executed writing by the Parties.

       23. Governing Law. This Agreement shall be deemed to have been executed
and delivered within the State of California, and it shall be construed,
interpreted, governed, and enforced in accordance with the laws of the State of
California. Any action at law, suit in equity, or other judicial proceedings for
the enforcement of this Agreement, or related to any provision of this
Agreement, shall be instituted only in courts with venue in the State of
California, except that the Company may seek injunctive relief in any court
having jurisdiction for any claim relating to the alleged misuse or
misappropriation of the Company's trade secrets or confidential or proprietary
information. The Executive hereby expressly consents to venue and personal
jurisdiction of the state and federal courts in the State of California for any
lawsuit filed there against the Executive by the Company arising from or
relating to this Agreement.

       24. Attorneys' Fees. In the event that either Party brings an action to
enforce or effect its rights under this Agreement, the prevailing party shall be
entitled to recover its costs and expenses, including the costs of mediation,
arbitration, litigation, court fees, plus reasonable attorneys' fees, incurred
in connection with such an action.

       25. Effective Date. This Agreement shall be effective on the eighth day
following the date on which the Executive executes this Agreement, provided that
the Executive does not revoke this Agreement prior to such date (the "EFFECTIVE
DATE").

       26. 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.

       27. 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; and

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

                                      -6-
<PAGE>   7

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

                                        DIGITAL IMPACT, INC.

Dated:  May 10, 2001                    By:    /s/  David Oppenheimer
                                           -------------------------------------

                                        Name:    David Oppenheimer

                                        Title:   Chief Financial Officer

                                        EXECUTIVE

Dated:  May 17, 2001                    /s/  James Wahlstrom
                                        ----------------------------------------
                                        James Wahlstrom

                                      -7-

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