If the contract allows termination with a 10 day notice, which is what you said in your post, how then did you breach the contract?
Assuming you did breach this agreement, what possible damages could there be? You find them advertisers that pay $195 each, less your commisison. Big deal contract there.
Apparently you are not even in the same state, so how does she think she is going to sue you? It is not nearly enough for federal court and no state court would have any personal jurisdiction.
No contract can force you to take part in illegal conduct. There are contracts that are illegal on their face and contracts that can become illegal due to fraud or other actions on part of a party. No contract can force you to take part in any fraud and if they can't fully explain this situation, I too would not want to risk my reputation possibly helping some business ripe off customers I found for them.
Although AZ is the choice of law state, it does not give the court any jurisdiction over you. If you decided to show up there, then the court could claim personal jurisdiction.
If she does sue, file an aswer saying that you do not live in AZ and never have and the court has no personal jurisdiction over you. I would also argue the contract was made fraudulent by the actions of the radio station and is thus unenforceable in any court.
To be safe you'll want to research what grounds AZ courts use for long arm jurisdiction. You will also want to see if the winning party in a breach of contract case gets attorney fee awards. In many states each party pays their own attorney, and if that is the case, her attorney fees are going to be more than any award she is likely to get, assuming she could win.
You might also want to point out to her that if she sues, she opens herself and the business to discovery and you will be able to find out every detail of their operations and find out if they have scammed anyone else. If you can show a pattern of fraud, she will go down in flames. I would also mention the bad publicity in their local market and nationally that would flow from such a case.
Worse case scenario, you will have to hire an attorney in AZ to represent you. That would be cheaper than flying there for every little thing. Some courts will also let you appear by telephone. However I seriously think it will never get that far.

