EXHIBIT U --------- APN HOLDING COMPANY, INC. July 31, 2007 VIA FAX AND FEDERAL EXPRESS --------------------------- Salton, Inc. 1955 W. Field Court Lake Forest, IL 60045 Attention: SFP Merger Sub, Inc. c/o Salton, Inc. 1955 W. Field Court Lake...

                                                                      EXHIBIT U
                                                                      ---------



                           APN HOLDING COMPANY, INC.

                                 July 31, 2007



VIA FAX AND FEDERAL EXPRESS
---------------------------

Salton, Inc.
0000 X. Xxxxx Xxxxx
Xxxx Xxxxxx, XX  00000
Attention:

SFP Merger Sub, Inc.
c/o Salton, Inc.
0000 X. Xxxxx Xxxxx
Xxxx Xxxxxx, XX  00000
Attention:


                   NOTICE OF TERMINATION OF MERGER AGREEMENT
                   -----------------------------------------

Ladies & Gentlemen:

        Reference is made to that certain  Agreement and Plan of Merger,  dated
as of February 7, 2007 (the "MERGER AGREEMENT"), by and among Salton, Inc., SFP
Merger Sub, Inc.,  and APN Holding  Company,  Inc. By this notice,  APN Holding
Company, Inc. hereby terminates the Merger Agreement pursuant to Section 8.1(e)
of the Merger Agreement.

                                             Very truly yours,

                                             APN HOLDING COMPANY, INC.


                                             By: /s/ Xxxxxx X. Xxxxxxx
                                                 ----------------------
                                                 Xxxxxx X. Xxxxxxx
                                                 Vice President and
                                                 Senior Managing Director


cc:   Xxxxxxxxxxxx Xxxx & Xxxxxxxxx LLP
      7800 Sears Tower, 000 Xxxxx Xxxxxx Xxxxx
      Xxxxxxx, XX  00000-0000
      Attention:  Xxxx Xxxxxxxxxx

      Mr. Xxxxxxx Xxxx
      Salton, Inc.
      0000 X. Xxxxx Xxxxx
      Xxxx Xxxxxx, XX  00000