RADIO PURCHASING AGENT AGREEMENT
A) [Insert name of Advertiser], with an address of [insert full address] â€œAdvertiserâ€ is in the
business of among other things, marketing products or services via radio advertising.
B) [Insert name of Radio Media agent/agency] with an address of [insert full address] â€œAgencyâ€,
is among other things, a media agency that has access to radio airtime through a wide range
of stations, networks, and syndicators and books and manages time thereon for a wide variety
C) Advertiser and Agency may collectively be referred to herein as the â€œPartiesâ€. The Parties
wish by this Agreement to set forth the terms under which Agency will purchase commercial
time on radio stations, networks, and syndicators airing in the United States and Canada on
behalf of Advertiser.
1. Media Purchasing. Agency will act as Advertiserâ€™s exclusive agency of record for the
placing and purchasing of radio media time on all stations, networks and through
syndicators in the United States and Canada [Insert type of advertisement, for example, 15
second radio spot] produced, marketed or distributed by Advertiser.
2. Administrative Services. Subject to Advertiserâ€™s fulfillment of its obligations under Section
3, Agency will review all media contracts to be entered into hereunder on behalf of
Advertiser for verification of all particulars contained therein, including, without limitation,
extent, dates, and times of media placements. Agency will secure and verify for accuracy all
proof of performance records (station invoices and affidavits shall serve as proof of
performance records) of all media placed on Advertiserâ€™s behalf and present them to
Advertiser in a timely manner each month.
3. Media Charges. Agency shall bill Advertiser for the media charges incurred or booked on
Advertiserâ€™s behalf and Advertiser shall pay for the same as specified herein.
4. Commissions. The gross media rate stated by the applicable media provider is generally
15% more than the provider expects to receive. Advertiser shall pay Agency one hundred
percent (100%) of the gross dollar amount of each media purchase made by Agency on
behalf of Advertiser. This will include Agencyâ€™s commission at a rate of fifteen percent
(15%) of said amount in full consideration of Agencyâ€™s services pursuant to this Agreement.
By way of example, if a media purchase has a gross media rate of $1000.00, Advertiser will
be responsible for proper payment of $1000.00 to Agency that shall represent payment in
the amount of $850.00 for media and $150.00 as Agencyâ€™s commission.
5. Invoices and Payments. Agency will invoice Advertiser for media charges and commissions
on a weekly basis and Advertiser shall remit proper payment for the full amount shown due
on each invoice as described herein. Time is of the essence in all payment matters.
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5.1 Billing terms are cash in advance, through two full broadcast weeks: Agency invoices
will reflect all commissions and media charges for media items not previously invoiced and
airing or scheduled to air through two full broadcast weeks past the invoice date (through
the third Sunday after the invoice date).
5.2 Payment: Advertiser shall have five business days from receipt of Agencyâ€™s invoice,
including the date of receipt, to deliver proper payment to Agency.
5.3 Should Agency fail to receive payment by the due date, Agency will notify Advertiser
that it has not received proper payment and Advertiser shall have until the close of the
business day following receipt of this notice to deliver payment to Agency to avoid a
material breach of this agreement. If this default is not cured and / or upon Agency's failure
to receive reasonable assurance that a timely curing payment is forthcoming, Agency may,
in its sole discretion and without notice to Advertiser, cancel any or all remaining scheduled
media placed on Advertiserâ€™s behalf by Agency in addition to pursuing any other legal
remedies available. All amounts not paid after 30 days of presentation on an invoice shall
bear interest at the rate of 10% per annum from the date due until paid as late fee, payable
5.4 If Advertiser fails to pay any invoice in full and when due, then pending payment
thereof, including applicable interest if any, Agency, upon 3 days notice to Advertiser, may
suspend all services as provided for in Sections 1, 2 and 6 until payment is made and
Agency will not be deemed in default, nor will Advertiser be deemed relieved of its
obligations hereunder. If Agency retains a collection agency and or counsel for the purpose
of enforcing its rights under this Agreement, Advertiser agrees to pay, on demand, Agencyâ€™s
costs and expenses (including court/arbitration costs, collection agent and reasonable
attorney fees) incurred in connection therewith.
6. Credits, Rebates and Audit Rights. If media time for which Agency has invoiced Advertiser
does not air, Advertiser shall be credited the amount that was invoiced for that media
together with all other credits, discounts, commissions, rebates, refunds, or such similar
payments received in connection with media time that did not air on the next invoice to
Advertiser or as soon as otherwise practical so long as Advertiser is current in all
obligations to Agency on this or any other Agreement with Agency. If Advertiser does not
have any outstanding obligations to Agency, all credits or similar amounts due Advertiser
shall remain on account with Agency until such time Agency receives a written request for a
refund from Advertiser. At any reasonable time during the term of this Agreement, and for
one (1) year thereafter, and upon fourteen (14) days prior written notice to Agency,
Advertiser may examine Agencyâ€™s files and records pertaining to media purchases made on
behalf of Advertiser only.
7. Term. This Agreement shall take effect upon execution and shall remain in effect until thirty
(30) days after either party informs the other, in writing, of termination. All provisions that
are intended to survive termination shall survive termination, including, but not limited to
Advertiserâ€™s obligation to compensate Agency for all media placed on Advertiserâ€™s behalf
by Agency, Agency's commission and interest thereon, and Agency's obligation to refund all
credits due to Advertiser.
8. Cancellations. Subject to the cancellation policies of each individual media entity, and upon
Agency's receipt of Advertiserâ€™s written instructions to cancel media purchases, Agency
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shall exercise all reasonable efforts to cancel all television airtime purchased by Agency on
behalf of Advertiser which Advertiser is unable to use or no longer desires. The obligation
to pay Agency for all media that Agency is unable to cancel exists even if Agency has not
yet invoiced Advertiser for that particular media. Advertiser shall be liable for any and all
media charges and Agency commissions for the media time that Agency is unable, despite
the exercise of all reasonable efforts, to cancel. Advertiser acknowledges that to best serve
Advertiser, Agency books airtime on an ongoing basis and this may include media airing
within a few days of its booking.
9. Disclosure. Neither party may disclose the terms of this Agreement to a third party except
as is reasonably necessary to perform obligations or rights under this Agreement, provided
that either party may disclose the existence of the relationship created by this agreement.
10. Warranty Disclaimer. AGENCY MAKES NO WARRANTIES, EXPRESS OR IMPLIED,
INCLUDING, BUT NOT LIMITED TO, ANY WARRANTIES