<PAGE>   1
                                                                   EXHIBIT 10.7


Definitive Copy


                                 AMENDMENT NO. 1

                                       TO
                       TELEDYNE TECHNOLOGIES INCORPORATED

               1999 NON-EMPLOYEE DIRECTOR STOCK COMPENSATION PLAN



                         EFFECTIVE AS OF JANUARY 1, 2001


Preamble: The Board of Directors of Teledyne Technologies Incorporated has
determined that it is in the best interests of the Company to amend the Teledyne
Technologies Incorporated 1999 Non-Employee Director Stock Compensation Plan
(the "Plan") to permit: (1) fees paid by the Company to a Non-Employee Director
for attending meetings of the Board or Committees of the Board to be paid in the
form of cash, Common Stock or Stock Options; and (2) a Non-Employee Director to
elect to defer twenty-five percent (25%), fifty percent (50%) or seventy-five
percent (75%) of his or her Director's Retainer Fee Payment under and in
accordance with the Teledyne Technologies Incorporated Executive Deferred
Compensation Plan, as amended and as the same may be amended from time to time
or any successor plan (the "TDY Deferred Compensation Plan"). Capitalized terms
used and not otherwise defined in this Amendment No. 1 have the meanings
ascribed to such terms in the Plan.



The Plan is hereby amended as follows:


1.      A new Section 4.5 is hereby added to the Plan and shall read in its
        entirety as follows:



4.5     Meeting Fees



(a)     General. A Non-Employee Director may elect to have all fees paid by the
        Company to a Non-Employee Director for attending meetings of the Board
        or Committees of the Board during a Compensation Year ("Meeting Fees")
        either one hundred percent (100%) (i) in cash, (ii) in the form of
        Common Stock, or (iii) in the form of Stock Options. If a Non-Employee
        Director has not made an election pursuant to Section 4.5(b) below,
        Meeting Fees shall be paid in cash.

(b)     Notice. A Non-Employee Director may file with the Secretary of the
        Company or other designee of the Board prior to commencement of a
        Compensation Year written notice making an election to receive any and
        all Meeting Fees for a Compensation Year either one hundred percent
        (100%) (i) in cash, (ii) in the form of Common Stock, or (iii) in the
        form of Stock Options. Notwithstanding the foregoing, in the case of a
        new Non-Employee Director, elections to receive Common Stock or Stock
        Options must be made within 30 days of the commencement of status as a
        Non-Employee Director for the applicable Compensation Year.

(c)     Common Stock. Each Non-Employee Director who pursuant to Section 4.5(b)
        is to receive Common Stock as all of his or her Meeting Fees with
        respect to a Compensation Year shall receive as of each Meeting Date
        during such Compensation Year a number of shares of Common Stock equal
        to the quotient obtained by dividing (i) the amount of the Meeting Fee
        to be paid in Common Stock by (ii) the Fair Market Value of the Common
        Stock per share on such Meeting Date. Cash shall be paid in lieu of any
        fractional share.

(d)     Meeting Fee Stock Options. Meeting Fee Stock Options will be granted on
        the Meeting Dates of each Compensation Year. The number of shares of
        Common Stock to be subject to a Meeting Fee Stock Option shall be equal
        to the nearest number of whole shares determined

<PAGE>   2

        by multiplying the Fair Market Value of a share of Common Stock on the
        date of grant by 0.3333 and dividing the result into the Meeting Fee
        elected to be received as Stock Options by the Non-Employee Director for
        the applicable Meeting Date for the Compensation Year. The purchase
        price of each share covered by each Meeting Fee Stock Option shall be
        equal to the Fair Market Value of a share of Common Stock on the date of
        grant of the Meeting Fee Option multiplied by 0.6666. The provisions of
        clauses (c), (d), (e) and (f) of Section 4.4 of the Plan regarding
        Annual Options and Retainer Fee Options shall apply to Stock Options
        paid in respect of Meeting Fees.

(e)     Meeting Date Defined. "Meeting Date" means the date on which the meeting
        of the Board or the Committee of the Board is held for which a Meeting
        Fee is payable.

2.      A new Section 4.6 is hereby added to the Plan and shall read in its
        entirety as follows:

4.6     Deferral of Director's Retainer Fee Payment

(a)     Permitted Deferral of Director's Retainer Fee Payment. Notwithstanding
        anything in Article IV or this Plan to the contrary, a Non-Employee
        Director may elect to defer payment of, as of a Payment Date for an
        applicable Compensation Year, twenty-five percent (25%), fifty percent
        (50%) or seventy-five percent (75%) of his or her Director's Retainer
        Fee Payment under and in accordance with the TDY Deferred Compensation
        Plan. Meeting Fees will not be subject to deferral.

(b)     Notice of Deferral. A Non-Employee Director may file with the Secretary
        of the Company or other designee of the Board prior to commencement of a
        Compensation Year written notice making an election to defer payment of
        twenty-five percent (25%), fifty percent (50%) or seventy-five percent
        (75%) of his or her Director's Retainer Fee Payment under and in
        accordance with the TDY Deferred Compensation Plan. If, for an
        applicable Compensation Year, a Non-Employee Director has not made an
        election pursuant to Section 4.2 to receive Stock Options or Common
        Stock in lieu of at least twenty-five percent (25%) of his or her
        Director's Retainer Fee Payment or an election to defer payment of a
        permitted percentage of his or her Director's Retainer Fee Payment, then
        seventy-five percent (75%) of such Director's Retainer Fee Payment shall
        be paid in cash and twenty-five percent (25%) shall be paid in the form
        of Common Stock.

(c)     TDY Deferred Compensation Plan. Once the notice specified in Section
        4.5(b) is timely filed, permitted elected deferrals of a Director's
        Retainer Fee Payment shall be subject to the terms and conditions,
        including without limitation investment elections and distribution
        requirements, of the TDY Deferred Compensation Plan.

3.      Effective Date

This Amendment No. 1 is effective beginning with the Compensation Year
commencing January 1, 2001. A notice of an election as to the form of Meeting
Fees payment as provided in Section 4.5 of the Plan for the 2001 Compensation
Year and a notice of an election to defer a Director's Retainer Fee Payment as
provided in Section 4.6 of the Plan for the 2001 Compensation Year may be made
on or after December 1, 2000, but in any event before December 31, 2000.



                                       2