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                                                                    EXHIBIT 10.7

                        INDEPENDENT CONTRACTOR AGREEMENT

THIS INDEPENDENT CONTRACTOR AGREEMENT (the "Agreement") is made as of this 1st
day of December, 1999 by and between Sherman L. Cruz ("Consultant"), and Saturn
Electronics & Engineering, Inc., a Michigan corporation ("Saturn").

     A.       Saturn desires to retain Consultant as an independent contractor
              to assist Saturn in the matters described in this Agreement.
     B.       Consultant is willing to provide such services on the terms and
              conditions stated in this Agreement.

     Therefore, the parties agree as follows:

1.   SERVICES. Consultant will provide services to Saturn in accordance with
     this Agreement. A general description of the consulting services to be
     performed by Consultant is set forth on Attachment 1 which is attached to
     this Agreement and incorporated by reference. The services shall be
     performed by Consultant in Orange County, California. Saturn will define
     the specific type and scope of assignments and the priority of Consultant's
     services, with Consultant reporting directly to Gene Smith, Executive Vice
     President of Saturn. Consultant will control all decisions on how
     assignments are to be performed. Consultant shall not be restricted from
     performing services for other businesses or individuals so long as those
     services do not interfere with Consultant's obligations under this
     Agreement.

2.   TERM; PAYMENT; TERMINATION.

 (a) Term. Unless sooner terminated in accordance with the terms of this
     Agreement, the term of this Agreement will be three (3) months commencing
     December 1, 1999 and ending February 28, 2000.

 (b) Fee and Payment Terms. Saturn will pay to Consultant $13,000/month for
     full-time services. Consultant will submit monthly invoices to Saturn which
     shall detail the number of hours of services provided the previous month
     and a description of the services performed during the previous month. In
     the event Consultant satisfactorily performs the services required under
     this Agreement, Saturn will pay all invoices upon receipt.

 (c) Termination. Saturn may terminate this Agreement at any time without
     liability if satisfactory progress toward completion of assignments is not
     being made, or if Saturn is otherwise not satisfied with Consultant's
     performance. Either Saturn or Consultant may terminate this Agreement at
     any time for convenience by sending the other party ten (10) days prior
     written notice of his or its desire to terminate. Upon termination or
     expiration of this Agreement, Consultant will submit to Saturn all
     requested reports (including all files and correspondence relating to
     specific projects or assignments and the items described in Section 8(c)
     below) and specific instructions describing unfinished activities which are
     required to complete any unfinished assignments. Consultant shall submit a
     final invoice to Saturn for all services actually performed prior to the
     date of termination

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     or expiration and Saturn shall pay such invoice in accordance with the
     terms of this Agreement.

 (d) Expenses. Consultant is an independent contractor and as such will be
     responsible for all of Consultant's own expenses, including, but not
     limited to, tools and equipment, rent, utilities, wages, salaries and
     benefits of Consultant, license fees, insurance and supplies; provided,
     however, that Saturn shall reimburse Consultant for reasonable expenses
     incurred for travel, meal and business expenses upon delivery of acceptable
     receipts in accordance with Saturn's policy on business expense
     reimbursements. Saturn shall also reimburse Consultant for biweekly travel
     expenses to and from Detroit, Michigan to Orange County, California.

3.   INDEPENDENT CONTRACTOR RELATIONSHIP. Consultant will perform all services
     under this Agreement as an independent contractor and not as an employee or
     partner of Saturn, and nothing in this Agreement or otherwise shall be
     deemed to create an employee/employer or agent/principal relationship.
     Consultant shall not have any authority to act as Saturn's legal
     representative or enter into any contract or make any representations or
     warranties on behalf of Saturn. Consultant, as an independent contractor to
     Saturn, is self-employed and is responsible for all taxes and other
     governmental charges which are levied or assessed against any payment made
     by Saturn to Consultant under this Agreement. Consultant acknowledges and
     agrees that he/she is an independent contractor of Saturn and is not
     entitled to any benefits provided by Saturn to its employees.

4.   COMPLIANCE WITH LAWS. Consultant agrees to comply, at his own expense, with
     all laws, regulations, ordinances, directives and rules imposed by Federal,
     State and local governments or agencies, including, but not limited to,
     wage and hour, overtime, discrimination, and health and safety in carrying
     out its obligations under this Agreement.

5.   INSURANCE. Consultant shall obtain and maintain such insurance coverages
     as Saturn may time to time reasonably request. Consultant shall also
     provide a certificate(s) of insurance or other documentation evidencing
     Consultant's insurance coverages as required pursuant to this Section 5.

6.   INDEMNIFICATION. Consultant agrees to indemnify, defend and hold Saturn
     harmless from any and all liabilities, costs, expenses (including costs and
     attorney's fees) and claims for damage or injury of any nature whatsoever,
     whether known or unknown, which Saturn may incur, suffer, become liable
     for, or which may be asserted or claimed against Saturn as a result of the
     acts, errors or omission of Consultant, or breach of this Agreement by
     Consultant. This indemnity obligation shall survive the termination or
     expiration of this Agreement.

7.   CONFIDENTIALITY.

 (a) Use and Obligation of Confidence. In consideration of receiving Proprietary
     Information (defined below) from Saturn, Consultant agrees that during the
     term of this Agreement

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     and for a period of five (5) years following termination of this Agreement,
     Consultant shall:

         (1) hold the Proprietary Information in confidence and not disclose it
             to anyone (other than Saturn employees who have a need to know)
             unless otherwise agreed in writing by Saturn; and

         (2) use the Proprietary Information only in performing the services
             requested pursuant to this Agreement and for no other purpose.

     "Proprietary Information" means all information disclosed verbally,
     visually or in writing to Consultant, or which Consultant develops in
     performing services under this Agreement, relating to Saturn's and Saturn's
     subsidiaries' businesses, costs, business records and plans, financial and
     marketing data and strategies, equipment, software, components, devices,
     products, processes, techniques, technology, ideas, know-how, customers and
     suppliers.

 (b) Exceptions. Notwithstanding subsection (a) above, this Agreement shall
     impose no obligation upon Consultant with respect to any Proprietary
     Information which (1) is now or subsequently becomes publicly known or
     available by publication, commercial use or otherwise without breach of
     this Agreement by Consultant; (2) is subsequently rightfully furnished to
     Consultant by a third person without a restriction on disclosure; (3) was
     already in the possession of Consultant prior to disclosure by Saturn; or
     (4) is legally required to be disclosed.

 (c) Delivery of Information. Upon the written request of Saturn, Consultant
     shall promptly deliver to Saturn all written Proprietary Information
     furnished by Saturn and all reports, memos, research, analysis and
     summaries of work performed by Consultant under this Agreement, and
     Consultant will not retain any notes, copies, extracts or other
     reproductions thereof in whole or in part.

 (d) Survival of Obligations. The confidentiality and nonuse obligations of this
     Section 7 shall survive the termination or expiration of this Agreement.

 (e) Property Rights. All software programs, documentation, know-how, processes,
     designs, drawings, documentation, technology, ideas, concepts, techniques,
     inventions, developments, improvements and all other information and
     documentation ("Technology") developed by Consultant in carrying out the
     services to be provided pursuant to this Agreement shall be delivered to
     Saturn on completion or termination of this Agreement, and shall be the
     sole property of Saturn. Consultant assigns to Saturn all of its right,
     title and interest in all the Technology. Consultant agrees that all
     services and work performed for Saturn by Consultant which is eligible for
     copyright protection shall be a work made for hire for Saturn. Consultant
     agrees to provide all assistance reasonably requested by Saturn in the
     establishment, preservation and enforcement of Saturn's rights in the
     Technology, including, but not limited to, executing documents.

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8.   NONSOLICITATION. During the term of this Agreement and for twelve (12)
     months after termination or expiration of this Agreement, Consultant will
     not directly or indirectly solicit any of Saturn's employees for employment
     without the prior written consent of Saturn.

9.   GENERAL.

 (a) Assignment, Consultant shall not assign his/her rights or duties hereunder,
     or any interest herein, without the prior written consent of Saturn.

 (b) Integration; Amendment. This Agreement constitutes the entire agreement
     between the parties relating to the subject matter and no other agreement,
     statement, promise or practice between the parties relating to the subject
     matter shall be binding on the parties. This Agreement may be changed only
     by a written amendment signed by both parties.

 (c) Waiver. Failure by either party at any time to require performance by the
     other party or to claim a breach of any provision of this Agreement will
     not be construed as a waiver of any subsequent breach or effectiveness of
     this Agreement, nor any part thereof, or prejudice either party as
     regarding any subsequent action.

 (d) Governing Law. This Agreement shall be governed by and construed in
     accordance with the laws of the State of Michigan. Any claim or controversy
     arising out of this Agreement shall be settled by binding arbitration in
     accordance with the commercial arbitration rules of the American Bar
     Association, the arbitration shall take place in the Detroit, Michigan
     metropolitan area, and judgment upon any award rendered by the arbitrator
     may be entered into any court having jurisdiction.

 (e) Attorney's Fees. In the event that any action is brought by either party
     as the result of a breach or a default of any provision of this Agreement,
     the prevailing party of such action shall be awarded reasonable attorney's
     fees and costs in addition to any other relief to which the party may be
     entitled.

 (f) Notices. All notices, requests, demands and other communications which are
     required or may be given under this Agreement shall be in writing and
     delivered to the recipients' address, or telecopier number hereinafter set
     forth by any of the following methods: (i) personally delivered, (ii)
     forwarded by overnight air express and receipted for by the recipient or an
     agent of the recipient, (iii) sent by telephonic facsimile transmission,
     with confirmatory copies (iv) or mailed by registered or certified United
     States mail, postage prepaid and return receipt requested. Notice made in
     accordance with this Section shall be deemed delivered on receipt of
     delivery by hand or confirmed wire transmission; on the third business day
     after mailing if mailed by registered or certified United States mail; and
     on the next business day after mailing or deposit with an overnight courier
     service if delivered by express or overnight courier. Any notices or other
     communications required or permitted hereunder shall be addressed to the
     following addresses (or to such other address of a party as shall have been
     specified to the other parties to this Agreement by notice):

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Sherman L. Cruz
970 Golfview
Rochester Hills, MI 48307
Fax No.
       ----------

Saturn Electronics & Engineering, Inc.
255 Rex Boulevard
Auburn Hills, MI 48326
Attn.: Don Cowie
FAX No.: (248) 853-2645

 (g) Severabilily. Should any term or provision of this Agreement be held to be
     invalid or unenforceable, the balance of this Agreement shall remain in
     full force and effect and shall stand as if the unenforceable part did not
     exist.

10.  ETHICS POLICY. Consultant acknowledges receipt of Saturn's Legal and
     Ethical Standards Policy and understands and agrees to abide by such policy
     to the extent applicable to independent consultants.

  IN WITNESS WHEREOF, Consultant and Saturn have executed this Agreement,
effective as of the date written above.

                                          Consultant:

                                          /s/ Sherman L. Cruz
                                          --------------------------------------
                                          Sherman L. Cruz

                                          SATURN ELECTRONICS & ENGINEERING,
                                          INC., a Michigan corporation

                                          By: /s/ Donald J. Cowie
                                             -----------------------------------
                                             Donald J. Cowie, CFO

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                                  ATTACHMENT I

                            DESCRIPTION OF SERVICES

Consultant shall provide all services consistent with the services provided by a
corporate controller, and all such other services as Saturn shall reasonably
request.<PAGE>   1
                                                                    EXHIBIT 10.8

                 AMENDMENT TO INDEPENDENT CONTRACTOR AGREEMENT

     On December 1, 1999, Saturn Electronics & Engineering, Inc. ("Saturn") and
SHERMAN L. CRUZ ("Consultant") entered into an Independent Contractor Agreement
(the "Agreement"). Section 2(a) of the Agreement provides that the term of the
Agreement ends February 28, 2000. Saturn and Consultant desire to amend the
Agreement to extend the term as provided in this Amendment.

     Now, therefore, Saturn and Consultant amend the Agreement as follows:

1.   Section 2(a) of the Agreement is amended in its entirety to provide as
     follows:

     "Term. Unless sooner terminated in accordance with the terms of this
     Agreement, the initial term of this Agreement will be three (3) months
     commencing December 1, 1999 and ending February 28, 2000. After February
     28, 2000, this Agreement will automatically renew on a month-to-month basis
     until August 31, 2000 unless either Saturn or Consultant terminates this
     Agreement by sending written notice to the other party at least ten (10)
     days prior to expiration of the then current monthly period."

2.   All other terms and provisions of the Agreement remain in full force and
     effect and are hereby affirmed.

     IN WITNESS WHEREOF, the parties have signed this Amendment as of February
28, 2000.

SATURN ELECTRONICS & ENGINEERING,                  CONSULTANT
INC.

By:   Donald J. Cowie                              Sherman L. Cruz
   ----------------------------                    -----------------------------
      Donald J. Cowie, CFO                         Sherman L. Cruz

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