Document:

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                                                                 EXHIBIT 4.2(d)

                         ADVANCED MICRO DEVICES, INC.,

                                     Issuer

                                      AND

                    UNITED STATES TRUST COMPANY OF NEW YORK,

                                    Trustee

                               _________________

                          Third Supplemental Indenture

                           Dated as of July 28, 2000

                               _________________

                         Supplemental to the Indenture
            dated as of August 1, 1996, as amended and supplemented
                              with respect to the
                       11% Senior Secured Notes due 2003

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          THIRD SUPPLEMENTAL INDENTURE (this "Third Supplemental Indenture"),
dated as of July 28, 2000, among ADVANCED MICRO DEVICES, INC., a Delaware
corporation (hereinafter called the "Company"), as issuer, and the UNITED STATES
TRUST COMPANY OF NEW YORK, as trustee (hereinafter called the "Trustee"), under
the Indenture, dated as of August 1, 1996, by and among the Company and the
Trustee, as amended and supplemented to the date hereof (the "Indenture").

                                    RECITALS

          The Company is making a tender offer (the "Tender Offer") to purchase
for cash its 11% Senior Secured Notes due 2003 (the "Notes"), which were issued
under the Indenture.

          The Company also is soliciting consents from Holders of the Notes to
certain amendments to the Indenture contained in this Third Supplemental
Indenture (the "Amendments").

          Section 9.02 of the Indenture provides that the Company and the
Trustee, with the consent of the Holders of at least a majority in aggregate
principal amount of the then outstanding Notes, may amend or supplement certain
provisions of the Indenture.

          In accordance with Section 9.02 of the Indenture, the Holders of at
least 50% in principal amount of outstanding Notes have consented to the
Amendments.

          The Board of Directors of the Company has duly authorized the
execution and delivery of this Third Supplemental Indenture. In addition, the
Company has done all other things necessary to make this Third Supplemental
Indenture a valid agreement of the Company in accordance with the terms hereof
and of the Indenture.

          This Third Supplemental Indenture is effective as of the date upon
which the conditions set forth in Section 1.8 hereof (subject to the provisos
set forth therein) are satisfied and the Amendments effected by this Third
Supplemental Indenture will become operative with respect to the Notes on the
date such Notes that are tendered and not withdrawn are accepted for purchase
and paid for by the Company pursuant to the Tender Offer.

          WHEREFORE, each party agrees as follows for the benefit of the other
party and for the equal or ratable benefit of the Holders of the Notes, as
follows:

                                   ARTICLE I
            DEFINITIONS AND OTHER PROVISIONS OF GENERAL APPLICATION

     1.1  Definitions.
          -----------

          For all purposes of the Indenture and this Third Supplemental
Indenture, except as otherwise expressly provided or unless the context
otherwise requires:

          (a) the words "herein," "hereof" and "hereunder" and other words of
similar import refer to the Indenture and this Third Supplemental Indenture as a
whole and not to any particular Article, Section or subdivision; and

          (b) capitalized terms used but not defined herein shall have the
meanings assigned to them in the Indenture.
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     1.2  Governing Law.
          -------------

          This Third Supplemental Indenture shall be governed by and construed
in accordance with the laws of the State of New York.

     1.3  Successors.
          ----------

          All agreements of the Company in this Third Supplemental Indenture
shall bind their respective successors.  All agreements of the Trustee in this
Third Supplemental Indenture shall bind its successors.

     1.4  Duplicate Originals.
          -------------------

          The parties may sign any number of copies of this Third Supplemental
Indenture.  Each signed copy shall be an original, but all of them together
represent the same agreement.

     1.5  Separability.
          ------------

          In case any provision in this Third Supplemental Indenture shall be
invalid, illegal or unenforceable, the validity, legality and enforceability of
the remaining provisions shall not in any way be affected or impaired thereby.

     1.6  Headings, Etc.
          -------------

          The Article and Section headings of this Third Supplemental Indenture
have been inserted for convenience of reference only, are not to be considered a
part hereof, and shall in no way modify or restrict any of the terms and
provisions hereof. Except as expressly provided herein and notwithstanding the
elimination of certain Sections of the Indenture as set forth in Article II of
the Third Supplemental Indenture, all references to Sections in the Indenture
shall remain unchanged.

     1.7  Benefits of Third Supplemental Indenture.
          ----------------------------------------

          Nothing in this Third Supplemental Indenture, express or implied,
shall give to any Person, other than the parties hereto and their successors
hereunder, any Paying Agent and the Holders, any benefit or any legal or
equitable right, remedy or claim under this Third Supplemental Indenture.

     1.8  Effectiveness.
          -------------

          This Third Supplemental Indenture supplements the Indenture and shall
be a part and subject to all the terms thereof.  Except as supplemented hereby,
the Indenture shall continue in full force and effect.

          This Third Supplemental Indenture shall take effect on the date (the
"Effective Date") that each of the following conditions shall have been
satisfied or waived:

          (a) each of the parties hereto shall have executed and delivered this
Third Supplemental Indenture; and

          (b) the Trustee shall have received any documents it may have
reasonably requested from the Company pursuant to the Indenture;

                                       2
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provided, however, that the Amendments set forth in Article II of this Third
Supplemental Indenture shall become operative only upon and simultaneously with,
and shall have no force and effect prior to, the Company's acceptance for
purchase of the Notes that are tendered and not withdrawn pursuant to the Tender
Offer; provided further, that such Amendments shall cease to have any force and
effect if payment for the Notes has not been made within three business days
after the Notes have been accepted for purchase.

                                   ARTICLE II
                                THE AMENDMENTS

     2.1  Amendments.
          ----------

          The Indenture is hereby amended as follows:

          (1) Section 4.03 of the Indenture is hereby amended to state, in its
entirety, the following:

          "SECTION 4.03.  SEC Reports.

          The Company will comply with TIA Section 314(a)."

          (2)  Section 4.07 of the Indenture is hereby eliminated in its
entirety and replaced with the words: "SECTION 4.07 [Intentionally omitted]."

          (3)  Section 4.08 of the Indenture is hereby eliminated in its
entirety and replaced with the words: "SECTION 4.08 [Intentionally omitted]."

          (4)  Section 4.09 of the Indenture is hereby eliminated in its
entirety and replaced with the words: "SECTION 4.09 [Intentionally omitted]."

          (5)  Section 4.10 of the Indenture is hereby eliminated in its
entirety and replaced with the words: "SECTION 4.10 [Intentionally omitted]."

          (6)  Section 4.11 of the Indenture is hereby eliminated in its
entirety and replaced with the words: "SECTION 4.11 [Intentionally omitted]."

          (7)  Section 4.12 of the Indenture is hereby eliminated in its
entirety and replaced with the words: "SECTION 4.12 [Intentionally omitted]."

          (8)  Section 4.13 of the Indenture is hereby eliminated in its
entirety and replaced with the words: "SECTION 4.13 [Intentionally omitted]."

          (9)  Section 4.14 of the Indenture is hereby eliminated in its
entirety and replaced with the words: "SECTION 4.14 [Intentionally omitted]."

          (10) Section 4.16 of the Indenture is hereby eliminated in its
entirety and replaced with the words:  "SECTION 4.16 [Intentionally omitted]."

          (11) Section 4.17 of the Indenture is hereby eliminated in its
entirety and replaced with the words:  "SECTION 4.17 [Intentionally omitted]."

                                       3
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          (12)  Section 5.01 of the Indenture is hereby amended to state, in its
entirety, the following:

          "SECTION 5.01.  Merger, Consolidation or Sale of Assets.

          The Company shall not consolidate or merge with or into or wind-up
into (whether or not the Company is the surviving corporation), or sell, assign,
transfer, lease, convey or otherwise dispose of all or substantially all of its
properties or assets in one or more related transactions, to any Person unless
(i) the Company is the surviving corporation (the "Surviving Corporation") or
the Person formed by or surviving any such consolidation or merger (if other
than the Company) or to which such sale, assignment, transfer, lease, conveyance
or other disposition shall have been made is a corporation organized or existing
under the laws of the United States, any state thereof or the District of
Columbia; (ii) the Surviving Corporation or the Person to which such sale,
assignment, transfer, lease, conveyance or other disposition shall have been
made assumes all the obligations of the Company under the Notes, this Indenture
and the Collateral Documents pursuant to a supplemental indenture or other
documents or instruments in form reasonably satisfactory to the Trustee; and
(iii) immediately after such transaction, no Default or Event of Default exists
under this Indenture or the Collateral Documents. The Trustee shall receive an
Opinion of Counsel and an Officers' Certificate, each stating that any such
consolidation, merger, winding-up, sale, transfer, lease, conveyance or other
disposition meets the requirements of this Section 5.01, and that all conditions
precedent herein provided for in clauses (i) through (iii) above relating to
such transaction have been complied with."

          (13)  Section 6.01 of the Indenture is hereby amended to delete the
text in Subsections 6.01(c), 6.01(e) and 6.01(f) and to replace the text of each
such Subsection with the text "[Intentionally omitted]."

          (14)  Section 6.02 of the Indenture is hereby amended to state, in its
entirety, the following:

          "If an Event of Default (other than an Event of Default specified in
clauses (h) and (i) of Section 6.01 hereof relating to either the Company, the
FASL Unrestricted Subsidiary or any Significant Subsidiary or group of
Subsidiaries (not including the Dresden, Germany Unrestricted Subsidiary) that,
taken together, would constitute a Significant Subsidiary) occurs and is
continuing, the Trustee by notice to the Company or the Holders of at least 50%
in principal amount of the then outstanding Notes by notice to the Company and
the Trustee may declare the unpaid principal of and any accrued interest on all
the Notes to be due and payable. Upon such declaration the principal and
interest, if any, shall be due and payable immediately. If an Event of Default
specified in clause (h) or (i) of Section 6.01 hereof relating to either the
Company, the FASL Unrestricted Subsidiary or any Significant Subsidiary or group
of Subsidiaries (not including the Dresden, Germany Unrestricted Subsidiary)
that, taken as a whole, would constitute a Significant Subsidiary occurs, such
an amount shall ipso facto become and be immediately due and payable without any
declaration or other act on the part of the Trustee or any Holder. The Holders
of a majority in principal amount of the then outstanding Notes by written
notice to the Trustee may rescind an acceleration and its consequences if the
rescission would not conflict with any judgment or decree and if all existing
Events of Default (except nonpayment of principal and interest, that has become
due solely because of the acceleration) have been cured or waived."

                            [signature page follows]

                                       4
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          IN WITNESS WHEREOF, the parties hereto have caused this Third
Supplemental Indenture to be duly executed, all as of the date first written
above.

                          ADVANCED MICRO DEVICES, INC.,
                          Issuer

                          By:  /s/ Francis P. Barton
                               -------------------------------------------
                          Name:  Francis P. Barton
                          Title:  Senior Vice President, Chief Financial Officer

                          UNITED STATES TRUST COMPANY OF NEW YORK,
                          Trustee

                          By:  /s/ Louis P. Young
                               -------------------------------------------
                          Name:  Louis P. Young
                          Title:  Vice President<PAGE>

                                                                 Exhibit 10.57

[AMD Letterhead]

September 27, 2000

Robert J. Rivet
4319 Lakeway Blvd.
Austin, TX  78734

Dear Bob:

I am pleased to extend to you this offer to join AMD, Inc. as Senior Vice
President and Chief Financial Officer, reporting to Hector Ruiz, President and
Chief Operating Officer on the terms set forth below;

1.  Base Salary - Your initial base salary will be $35,416.67 per month
    -----------
    ($425,000 per year) paid biweekly. Your base salary will be reviewed on an
    annual basis, generally in April. Any increase you may receive in April of
    2001 will be prorated to reflect actual number of months in AMD's employ.

2.  Bonus - You will participate in AMD's Vice President Incentive Plan (VPIP)
    -----
    with a short term component target of 50%, and a long term component
    target of 30%. Any bonus payment for which you may qualify in 2000 will be
    prorated to reflect actual number of months in AMD's employ. Details of
    this plan are described in the enclosed VPIP Summary Brochure.

    In addition, in the event that you forfeit any part of the Motorola 2000
    annual bonus, including both the short-term and long-term component, to
    which you would have been entitled, AMD will pay you an equivalent amount,
    not to exceed $425,000, on the date the bonus would have been paid by
    Motorola.

3.  Stock Options - On your first day of employment (the commencement date),
    -------------
    subject to the approval of the Compensation Committee of our Board of
    Directors, you will be granted a nonqualified stock option to purchase
    200,000 shares of AMD common stock at an exercise price equal to the
    closing price of AMD common stock on the grant date. Starting in 2001,
    your annual grant target is 100,000 options.

      Vesting
      -------
      200,000 options
            .  125,000 vest on the first anniversary of the grant date
            .  75,000 vest ratably over the 12-month period immediately
               following the first anniversary.

                                       1
<PAGE>

      100,000 options annual grant target beginning in 2001
            .  50,000 shares vest on the first anniversary of the grant date
            .  50,000 vest ratably over the 12-month period immediately
               following the first anniversary.
    Actual number of shares granted may be more or less than 100,000,
    depending on personal performance and competitive market considerations.

4.  Restricted Stock - Subject to the approval of the Compensation Committee
    ----------------
    of our Board of Directors you will be granted 30,000 shares of restricted
    stock with par value of $0.01 on your commencement date.
      Vesting
      -------
      30,000 shares of restricted stock
            .  10,000 vest in mid July 2001
            .  10,000 vest in mid July 2002
            .  10,000 vest in mid July 2005

A sample vesting schedule is shown in Exhibit A.  Shares shown as granted in
2001 and beyond are intended to demonstrate how shares vest over time.

5.  Special Employment Bonus - AMD will pay you a hire-on bonus of $370,000,
    ------------------------
    subject to approximate tax withholding, within 10 days of the beginning of
    the quarter following your commencement date.

6.  Retirement Benefit Replacement - Subject to your continued employment by
    ------------------------------
    AMD, the Company will provide you with a lump sum cash payment at age 57
    of an amount estimated to be the projected benefit payable to you under
    the Motorola Elected Officers Supplemental Retirement Plan on the date you
    attain age 57. If you retire from AMD at or after age 55 but prior to age
    57, you will be eligible to receive at age 57 a benefit similar to what
    you would be projected to receive under the Motorola Elected Officers
    Supplemental Retirement Plan. During the next few weeks, we will work with
    you and your financial advisor to determine the amount of this payment as
    well as the terms and conditions of the agreement under which this benefit
    will be provided.

7.  Involuntary Termination through 12/31/01 - In the event of your involuntary
    ----------------------------------------
    termination by AMD between your commencement date and January 1, 2002
    (other than for cause or as a result of a change in control) we will pay
    you an amount equal to one year's salary at the rate then in effect, plus
    an amount you would have earned under the Vice President Incentive Plan
    (VPIP) had you continued employment through the end of the year in which
    employment terminated, and we will accelerate the vesting of all unvested
    options and restricted stock granted to you on your commencement date (the
    initial grant).

                                       2
<PAGE>

8.  Management Continuity Agreement - Certain benefits will be available to
    -------------------------------
    you in the event of a change in control, which includes any change of a
    nature which would be required to be reported in response to Item 6(e) of
    Schedule 14A of Regulation 14A promulgated under the Securities Exchange
    Act of 1934, as amended. A change in control is conclusively presumed to
    have occurred on:

      .   Acquisition by an person, other than AMD, or any employee benefit
          plan of ours, of beneficial ownership of more than 20% of the
          combined voting power of our then outstanding securities.
      .   A change of the majority of the Board of Directors during any two
          consecutive years, unless certain conditions of Board approval are
          met.
      .   A determination by certain members of the Board within one year
          after an event that such event constitutes a change in control.

    The management continuity agreements provide that, in the event of a
    change in control, we will reimburse you for any federal excise taxes (and
    taxes on those taxes) payable as a result of benefits received from us.
    The agreements provide that, if within two years after a change in control
    your employment is terminated by the company or you are constructively
    discharged you will receive:

      .   A severance benefit equal to three times the sum of your rate of
          base compensation plus the average of your two highest bonuses in
          the last five years.
      .   Payment of your accrued bonus.
      .   Twelve months' continuation of other incidental benefits, and
      .   Full and immediate vesting of all unvested stock options, SARs and
          restricted stock awards.
      .   If termination following a change in control occurs on or after the
          date you attain age 55, you will receive a lump sum payment of the
          Retirement Benefit Replacement amount otherwise payable to you at
          age 57.

9.  Benefits and Perquisites - AMD makes available to our executives a broad
    ------------------------
    range of benefits and executive perqs., including health and dental
    insurance, 401(K) program with company matching and profit sharing.
    Enclosed are brochures describing these benefits and perqs. After your
    review, please direct any questions you may have to Reid Linney, Vice
    President Human Resources at (408) 749-2113 or to me.

10. Strategic Incentive - We will tailor a personalized inventive plan covering
    -------------------
    the 2001, 2002 and 2003 fiscal years. This plan will enable you to
    participate in AMD's success relative to our annual EVA objectives, as
    specified in our business plan. The target award in any year will be 100%
    of salary, although you will have an opportunity to earn up to 125% of
    salary for exceeding planned EVA. A boundary condition for any award to be
    earned for a given year is that every AMD product group must achieve EVA
    of zero or better. Provided that condition is satisfied, you will begin to
    accrue an award as soon as AMD's overall EVA for the year equals 60% of
    planned EVA. If AMD as a whole achieves its planned EVA for the year, then
    your award will equal the target award. As agreed, you and Hector will
    jointly finalize the details of this plan.

                                       3
<PAGE>

Bob, we believe that your career interests and accomplishments align very well
with AMD's requirements, and that you will be a very successful member of our
executive team.   We look forward to your early acceptance of our offer.  Please
call me if I can be of assistance to you.

Yours sincerely,

/s/ Stan Winvick                                  /s/ Bob Rivet 9/27/00

Stan Winvick
Senior Vice President
Human Resources

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