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.
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Attention:

SFP Merger Sub, Inc.
c/o Salton, Inc.
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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/ ▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇
                                                 ----------------------
                                                 ▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇
                                                 Vice President and
                                                 Senior Managing Director


cc:   ▇▇▇▇▇▇▇▇▇▇▇▇ ▇▇▇▇ & ▇▇▇▇▇▇▇▇▇ LLP
      7800 Sears Tower, ▇▇▇ ▇▇▇▇▇ ▇▇▇▇▇▇ ▇▇▇▇▇
      ▇▇▇▇▇▇▇, ▇▇  ▇▇▇▇▇-▇▇▇▇
      Attention:  ▇▇▇▇ ▇▇▇▇▇▇▇▇▇▇

      Mr. ▇▇▇▇▇▇▇ ▇▇▇▇
      Salton, Inc.
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