Document:

EXHIBIT 4.2

<PAGE>

SHARE SUBSCRIPTION OPTION PLAN
Adopted during Management Board meeting of February 8, 2001

                                                      Mr

Dear Mr               ,

In response to my proposal, Vivendi Environnement's Management Board, with the
agreement of the supervisory board and after announcement to the company officer
committee, decided on February 8th to introduce an employee stock option
subscription plan. I am pleased to inform you that you are one of the
beneficiaries of this plan.

I wanted to include as many colleagues as possible in the plan because,
together, we are building our company and contributing to its success on a daily
basis. Your personal commitment and professional performance are key to the
success of our company.

The ability of all of our employees to be factors in our growth is a guarantee
for our shareholders. It helps to strengthen our position as number one
worldwide in environmental services.

It has been decided to allocate to you subscription options for [ o ] Vivendi
Environnement shares at a unit price of 42 Euros.

Would you please confirm your agreement to the attached terms and conditions of
this special allocation by signing and returning a copy of this letter to me.

Your sincerely,

                                                                   Henri PROGLIO

<PAGE>

                             STOCK OPTION PLAN RULES

                                  FEBRUARY 2001

<PAGE>

Preamble

-        Definition of a stock purchase (or subscription) option plan

         A stock purchase (or subscription) option plan is an arrangement
         whereby Vivendi Environnement (the "Company") allocates to the salaried
         employees and/or corporate officers of the Company and/or companies
         linked to it, the possibility of purchasing (or subscribing) new shares
         over a certain period of time, at a price determined when the grant is
         made and which remains fixed throughout this period (except for any
         adjustments described below).

         Beneficiaries thereby receive an interest in the performance of the
         Company, as measured by the stock exchange valuation of its share.

         Any financial gain obtained from the exercise of the option rights and
         subsequent sale of the shares may be subject to tax treatment specific
         to the options and which depends on the beneficiary's place of
         residence for tax purposes.

I.       Conditions of allocation and particulars of the options

         -        Number of shares subject to the option

                  The Management Board determines the number of options
                  allocated to each beneficiary. This number is communicated to
                  the beneficiary by letter. As the options are irrevocable,
                  this number and the price cannot be changed during the option
                  term, except in the event of the adjustments set out below
                  (see page 3). New options may be allocated only pursuant to a
                  further decision by the Board.

         -        Particulars of the options

                  The grant of options is an irrevocable commitment made by the
                  Company to the beneficiaries, subject to the conditions set
                  out below.

                  Except in the event of the beneficiary's death, the options
                  are non-transferable and are not subject to execution or
                  attachment.

                  Options are exercised at the discretion of the beneficiary.

                  For American beneficiaries, the options granted (corresponding
                  to ADS, or even to ordinary shares) are considered to be
                  "NSOs" (Non-Statutory Stock Options), unless the grant letter
                  specifies that the options are "ISOs" (Incentive Stock
                  Options)(1).

         -        Duration and exercise term of the options

                  The options are granted irrevocably for a term of 8 years.

                  The Management Board determines the grant terms and conditions
                  and the date as of which options may be vested and exercised.
                  The beneficiary may exercise his options as of the date set by
                  the Management Board, at any time up to the end of the
                  duration, on one or several occasions, and in conformity with
                  the specific provisions adopted by the Management Board, or by
                  its Chairman under delegated authority, for the given plan.
                  Any option not exercised during the period lapses, with no
                  possibility of extension.

         -        Exercise price

                  The exercise price set for purchase of shares by beneficiaries
                  is determined on the day when the options are granted by the
                  Management Board, subject to limitations imposed by law and by
                  the authorisation given by the Meeting of Shareholders.

                  For beneficiaries receiving options giving the right to
                  ordinary shares listed on the Paris Bourse, the exercise price
                  is set in euros. For beneficiaries receiving options giving
                  the right to ADS listed on the New York Stock Exchange, the
                  exercise price is set in dollars.

         -        Adjustments to the exercise price

                  By law, the exercise price may not be modified during the term
                  of the option.

                  However, should the Company engage during this term in certain
                  financial or corporate transactions affecting the capital
                  stock, the Management Board will adjust the price and the
                  number of shares corresponding to options not yet exercised in
                  such a way as to keep constant the total value of options
                  allocated to each beneficiary. The way such adjustments are
                  calculated is prescribed by law. The Management Board shall
                  apply them as required.

-----------
(1) That is, an option intended to qualify as an incentive stock option within
the meaning of Section 422 of the Internal Revenue Code of 1986, as amended, and
the regulations promulgated thereunder. With respect to granted ISOs, to the
extent that the aggregate fair market value of shares subject to the ISOs, which
become exercisable for the first time during any calendar year (under all plans
of the Company), exceeds $100,000, such excess options shall be treated as NSOs.
For purposes of this provision, ISOs shall be taken into account in the order in
which they were granted, and the fair market value of the shares shall be
determined as of the time of the grant.

<PAGE>

                  The main transactions giving rise to such adjustments are as
                  follows:

                  *        capital increases in cash reserved for shareholders;

                  *        capital increases through capitalisation of reserves,
                           profits or additional paid-in capital, and
                           distribution of bonus shares;

                  *        issues of convertible or exchangeable bonds reserved
                           for shareholders.

                  Other exercise price adjustments are provided for by law, in
                  the case of somewhat exceptional financial transactions
                  (distribution of reserves, capital reduction resulting from
                  losses, etc.).

                  In all such situations, the adjustment procedure aims to keep
                  constant the total value of outstanding options granted.

         Neither the plan regulations nor the grant letter are to be construed
         as giving the beneficiary any rights whatsoever under his employment
         contract.

II.      Option vesting and exercise conditions and procedures

         The overall number of options, as stated above, vests annually in 1/3
         parts over three years, except as may be provided in exceptional cases
         by the President of the Management Board in his discretion and who
         reports on such exceptions once a year to the Compensation Committee.
         The option can be exercised (with no immediate sale for French
         beneficiaries) from the third year following the allocation up to 2/3rd
         (and up to 100% the fourth year).

         This vesting of 1/3 parts does not apply in the event of death,
         disability (2nd and 3rd categories as defined by Article L.341.4 of the
         French Social Security Code) or retirement. In these cases, the
         beneficiary (or his estate) acquires 100% of the options granted.

         In the event of departure for any reason whatsoever (including for the
         reasons mentioned above, with the exception of death), the beneficiary
         may exercise, up to expiry of the option term, only those options that
         were vested before such departure (including any options acquired under
         a waiver), in accordance with the option exercise procedures set out
         below.

         In the event of a beneficiary's death, the law provides that his estate
         may exercise his options within a period of six months following the
         date of death, but this period may not have the effect of prolonging
         the initial duration of validity of the options, if that duration
         expires earlier.

         However, in the event that a formal take-over bid is launched in
         respect of the share capital of the Company all allocated options are
         immediately treated as vested and exercisable, and the corresponding
         shares will become freely negotiable.

         -        Option exercise procedures

                  In order to exercise the options, non-American beneficiaries
                  must submit a written declaration to the Company's General
                  Counsel's Office, accompanied by an option exercise form
                  (which also has the validity of a purchase order) and by
                  payment of the price. For this purpose, each beneficiary
                  receives a form to be filled in, dated, signed and returned to
                  the Company each time options are exercised. This form is
                  attached as Appendix 1 for non-American beneficiaries.

                  American beneficiaries will have to complete, date, sign and
                  return to Vivendi Environnement's plan administrator the form
                  provided in Appendix 2 (cashless exercise) or Appendix 3
                  (exercise and purchase of shares). These forms may be modified
                  as necessary at any time.

         -        Payment of the price

                  The price must be paid in most cases in cash (cheque, bank
                  transfer), or by any other procedure put in place by the
                  managing banking or financial institution and approved by the
                  Company.

         -        Delivery of the securities

                  Each time options are exercised, non-American beneficiaries
                  must indicate on the option exercise form the administration
                  method desired for the acquired shares. It should be noted
                  that the transfer of shares and their registration on account
                  may take some time (up to 8 days for registration in an
                  "administered" nominal account). Registration in a "pure"
                  registered account is entrusted to the Securities Department
                  mandated by the Company(1). Registration in an "administered"
                  registered account gives the beneficiary the possibility of
                  choosing a different administrator. We recall, however, that
                  administration of "pure" registered accounts is free of charge
                  (no custody fees). Moreover, it facilitates compliance with
                  the reporting requirements to be described later (see below).

-----------
(1) BNP PARIBAS - GIS Emetteurs - Les Collines de l'Arche - 75450 Paris
cedex 09.

III. Particulars of shares purchased

         It is obligatory for the shares to be registered.

         They give the right to receive dividends paid in the year in which they
         are purchased, provided, however, that the options are exercised at
         least five working days before the date of the Meeting of Shareholders.

         Shares obtained by exercising options are negotiable immediately,
         except in the case of beneficiaries who are French residents. The
         latter may not sell shares corresponding to exercised options until
         expiry of the beneficial holding period applicable to the plan under
         French tax law, except for cases of derogation(1) (in particular those
         set out in Article 91 ter of Appendix II of the French General Tax
         Code).

IV.      Sensitive periods

         Beneficiaries must comply with legislation and regulations applicable
         to the use of privileged information.(2)

         Under all circumstances, beneficiaries wishing to exercise their
         options or to sell their shares will be personally responsible for
         meeting their obligation to abstain from such acts when they possess or
         may be presumed to possess, as a result of their duties within the
         Company, non-public information likely to have an influence on the
         market price of the shares.

         In addition, beneficiaries may not exercise their options or sell their
         shares during a period of at least 30 days before and one day after
         meetings of the Supervisory Board held to approve the financial
         statements of the Company. This 30-day mandatory hold period can be
         modified by the Company at its discretion at any time and consistent
         with applicable law.

V.       Application of the present Regulations

         Should any questions arise regarding the present Regulations and their
         application, the General Counsel should be consulted. It is clearly
         understood that any information provided by the individual departments
         of the Company (General Counsel's Office, legal department, financial
         department, human resources department) is limited to the communication
         of purely factual information, and may not take the form of legal,
         financial or tax advice in respect of which these departments may be
         held liable in any manner whatsoever.

-----------
(1) This period currently runs for five years, and is to be reduced to four
years by the draft law now being debated. These timing restrictions are not
applicable in the case of an explicit waiver granted by the Board of Directors,
or in the cases set out in Article 91 ter of Appendix II of the French General
Tax Code, namely:
-        dismissal or retirement of the holder, it being specified that the
         options have to have been exercised at least three years before the
         date of the event;
-        disability of the holder, with inclusion in the second or third
         disability category in the meaning of Article L.314.4 of the French
         Social Security Code;
-        death of the holder.
(2) Order dated 28 September 1967. Regulation N(degree)90-08 of the COB
(Commission des Operations de Bourse - French Stock Exchange Commission) and
rules of the U.S. Securities and Exchange Commission.

<PAGE>

VI.      Changes in the plan

         At any time, by a decision of the Management Board, and following
         consultation as required with the Compensation Committee, the Company
         may change the provisions of the present plan. Any changes that do not
         result in more favourable terms for beneficiaries are subject to
         written agreement between each beneficiary and the Company.

VII.     Compliance

         For the purposes of U.S. beneficiaries, shares shall not be issued
         pursuant to the exercise of an option, unless the exercise of such
         option and the issuance and delivery of such shares comply with all
         relevant provisions of law, in particular the Securities Act of 1933,
         as amended, the Securities and Exchange Act of 1934, the rules and
         regulations promulgated thereunder, applicable U.S. laws concerning the
         administration of stock option plans under state corporate and
         securities laws, and the requirements of any stock exchange or
         quotation system upon which the shares may then be listed or quoted.

VIII.    Liability of the Company

         The inability of the Company to obtain authority from any regulatory
         body having jurisdiction, which authority is deemed by the Company to
         be necessary to the lawful issuance of any shares hereunder, shall
         relieve the Company of any liability in respect of the failure to issue
         such shares as to which such requisite authority shall not have been
         obtained.

IX.      Applicable law and language

         The plan is subject to French law (Articles L.225-177 and following of
         the Commercial Code based on the Act of 24 July 1966 and the Decree of
         23 March 1967).

         The Management Board is duly authorised to grant options under the
         authority conferred upon it by the Meeting of Shareholders (June 21st,
         2000).

         The plan exists in an English language version and a French language
         version, with the latter taking precedence.

<PAGE>
                                   Appendices

1.       Request for the irrevocable exercise of options.

2.       Request for the irrevocable exercise of options and sale (for U.S
         participants only).

<PAGE>

<TABLE>

<S>                                      <C>                                                                               <C>
----------------------------------------
                                                                                                                            ANNEXE I
Document a remettre a / Document to be     Plan d'Options d'actions VEOLIA ENVIRONNEMENTde Fevrier 2001
                sent :
                                           VEOLIA ENVIRONNEMENT Stock Options Plan of February 2001
         VEOLIA ENVIRONNEMENT
               DRH - SO
         36-38, avenue Kleber
         75799 PARIS Cedex 16
----------------------------------------

------------------------------------------------------------------------------------------------------------------------------------
                                                   DEMANDE DE LEVEE IRREVOCABLE SIMPLE
                                 FINANCEMENT ASSURE PAR LE BENEFICIAIRE DES LA SIGNATURE DU PRESENT BULLETIN
                                             REQUEST FOR THE IRREVOCABLE EXERCISE OF OPTIONS
                                   FINANCING PROVIDED BY THE BENEFICIARY UPON SIGNATURE OF THE PRESENT FORM
------------------------------------------------------------------------------------------------------------------------------------

------------------------------------------------------------------------------------------------------------------------------------
Nom et prenom (en majuscules)
Name and forename (in capitals)
------------------------------------------------------------------------------------------------------------------------------------

Date et lieu de naissance               |___/___/_____|      |_____________________________| |____| |__________________________|
(mention obligatoire)                    Date de naissance      Lieu de naissance : Ville, Departement, Pays
Date and place of birth                  Date of birth                Place of birth : Town, County, Country
(compulsory mention)
------------------------------------------------------------------------------------------------------------------------------------
Nationalite / Nationality
------------------------------------------------------------------------------------------------------------------------------------
Numero de Securite Sociale              |___|___|___|___|____|____|
(for French resident only)
------------------------------------------------------------------------------------------------------------------------------------
Adresse du domicile fiscal
Address of tax domicile
------------------------------------------------------------------------------------------------------------------------------------
Adresse courrier (si differente)
Postal address (if different)
------------------------------------------------------------------------------------------------------------------------------------
</TABLE>

Ayant recu du Directoire de la societe VEOLIA ENVIRONNEMENT, en date du 8
fevrier 2001, une attribution d'options de souscription d'actions VEOLIA
ENVIRONNEMENT au prix d'exercice de...........(euro), declare demander la levee
irrevocable(1) des options dont je suis titulaire et en consequence
souscrire...................... actions VEOLIA ENVIRONNEMENT.
Pursuant to the decision taken by the Management Board of VEOLIA ENVIRONNEMENT
on February 8, 2001 to allot an option to subscribe to shares VEOLIA
ENVIRONNEMENT at an exercise price of (euro)........., hereby request the
irrevocable exercise (1) of the options held in my name and, accordingly,
subscribe to................................ shares VEOLIA ENVIRONNEMENT.

FINANCEMENT DE LA LEVEE (nombre d'actions souscrites x prix d'exercice) PAYMENT
(number of shares subscribed to x exercise price)

Je joins a ce document un cheque bancaire ou postal en euros libelle a l'ordre
de BNP Paribas Securities Services ou un virement en euros sur le compte : BIC
Code / SWIFT: PARBFRPPXXX, numero : 41329 00001 0000084009P 04 de
........................................... (euro) representant le montant de ma
levee d'options.
I enclose a bank or post office cheque in euros made out to BNP Paribas
Securities Services by direct transfer of euros into account: BIC Code / SWIFT:
PARBFRPPXXX, number: 41329 00001 0000084009P 04 or in an amount of (euro)
........................................... representing the amount due on the
exercise of the above options.

FORME JURIDIQUE DES TITRES
SHARE REGISTRATION
Les actions VEOLIA ENVIRONNEMENT issues de ma levee d'options seront inscrites
au moment de leur levee au nominatif pur sur un compte a mon nom aupres du
service actionnaires de la SOCIETE GENERALE.The VEOLIA ENVIRONNEMENT shares
received upon the exercise of the above options are to be held in registered
form in an account opened in my name at the Issuers Department held by the
SOCIETE GENERALE.

                               -------------------------------------------------
Fait a / Done at :...........  Date de reception de la levee d'options et
                               cachet de la societe VEOLIA ENVIRONNEMENT
Date / Date :................  Reception date of the exercise of the option and
                               Company stamp VEOLIA ENVIRONNEMENT
Signature(2):................
                               -------------------------------------------------

---------------
(1) Cet ordre de levee d'options est irrevocable et donne lieu a un reglement a
la date de signature./The instruction to exercise the options is irrevocable and
payment is due upon signature.

(2) Important : Faire preceder la signature de la mention manuscrite "Bon pour
souscription de (x) actions VEOLIA ENVIRONNEMENT". / Important : signature to be
preceded by the following hand-written text : "Bon pour souscription de (x)
actions VEOLIA ENVIRONNEMENT" ('Valid for the subscribe to (x) VEOLIA
ENVIRONNEMENT shares')

<PAGE>

<TABLE>

<S>                                      <C>                                                                               <C>
                                                                                                                            ANNEXE I
-----------------------------------------
Document a conserver par / Document to     Plan d'Options d'actions VEOLIA ENVIRONNEMENT de fevrier 2001
             be kept by :
                                            VEOLIA ENVIRONNEMENT Stock Options plan of February 2001
   Le beneficiaire / the beneficiary
----------------------------------------

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                                                 DEMANDE de LEVEE IRREVOCABLE SIMPLE
                             FINANCEMENT ASSURE PAR LE BENEFICIAIRE DES LA SIGNATURE DU PRESENT BULLETIN
                                           REQUEST FOR THE IRREVOCABLE EXERCISE OF OPTIONS
                              FINANCING PROVIDED BY THE BENEFICIARY UPON SIGNATURE OF THE PRESENT FORM
------------------------------------------------------------------------------------------------------------------------------------

------------------------------------------------------------------------------------------------------------------------------------
Nom et prenom (en majuscules)
Name and forename (in capitals)
------------------------------------------------------------------------------------------------------------------------------------

Date et lieu de naissance               |___/___/_____|      |_____________________________| |____| |__________________________|
(mention obligatoire)                    Date de naissance      Lieu de naissance : Ville, Departement, Pays
Date and place of birth                  Date of birth                Place of birth : Town, County, Country
(compulsory mention)
------------------------------------------------------------------------------------------------------------------------------------
Nationalite / Nationality
------------------------------------------------------------------------------------------------------------------------------------
Numero de Securite Sociale              |___|___|___|___|____|____|
(for French resident only)
------------------------------------------------------------------------------------------------------------------------------------
Adresse du domicile fiscal
Address of tax domicile
------------------------------------------------------------------------------------------------------------------------------------
Adresse courrier (si differente)
Postal address (if different)
------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
Ayant recu du Directoire de la societe VEOLIA ENVIRONNEMENT, en date du 8
fevrier 2001, une attribution d'options de souscription d'actions VEOLIA
ENVIRONNEMENT au prix d'exercice de......... (euro), declare demander la levee
irrevocable(1) des options dont je suis titulaire et en consequence souscrire
....................... actions VEOLIA ENVIRONNEMENT.
Pursuant to the decision taken by the Management Board of VEOLIA ENVIRONNEMENT
on February 8, 2001 to allot an option to subscribe to shares VEOLIA
ENVIRONNEMENT at an exercise price of (euro)............, hereby request the
irrevocable exercise of the options held in my name and, accordingly, subscribe
to................................shares VEOLIA ENVIRONNEMENT.

Financement de la levee (nombre d'actions souscrites x prix d'exercice)
Payment (number of shares subscribed to x exercise price)
 Je joins a ce document un cheque bancaire ou postal en euros libelle a l'ordre
de BNP Paribas Securities Services ou un virement en euros sur le compte : BIC
Code / SWIFT: PARBFRPPXXX, numero : 41329 00001 0000084009P 04 de
........................................... (euro) representant le montant de ma
levee d'options.
I enclose a bank or post office cheque in euros made out to BNP Paribas
Securities Services by direct transfer of euros into account: BIC Code / SWIFT:
PARBFRPPXXX, number: 41329 00001 0000084009P 04 or in an amount of (euro)
........................................... representing the amount due on the
exercise of the above options.

Forme juridique des titres
Share registration
Les actions VEOLIA ENVIRONNEMENT issues de ma levee d'options seront inscrites
au moment de leur levee au nominatif pur sur un compte a mon nom aupres du
service actionnaires de la SOCIETE GENERALE.The VEOLIA ENVIRONNEMENT shares
received upon the exercise of the above options are to be held in registered
form in an account opened in my name at the Issuers Department held by the
SOCIETE GENERALE.

                               -------------------------------------------------
Fait a / Done at :...........  Date de reception de la levee d'options et
                               cachet de la societe VEOLIA ENVIRONNEMENT
Date / Date :................  Reception date of the exercise of the option and
                               Company stamp VEOLIA ENVIRONNEMENT
Signature(2):................
                               -------------------------------------------------

-----------
(1) Cet ordre de levee d'options est irrevocable et donne lieu a un reglement a
la date de signature./The instruction to exercise the options is irrevocable and
payment is due upon signature.

(2) Important : Faire preceder la signature de la mention manuscrite
"Bon pour souscription de (x) actions VEOLIA ENVIRONNEMENT"./Important:
signature to be preceded by the following hand-written text: "Bon pour
souscription de (x) actions VEOLIA ENVIRONNEMENT" ('Valid for the subscribe to
(x) VEOLIA ENVIRONNEMENT shares').

<PAGE>

<TABLE>
<S>                                      <C>                                                                               <C>
----------------------------------
Document a remettre a / document     Plan d'Options d'actions VEOLIA ENVIRONNEMENT  de fevrier 2001                        ANNEXE II
          to be sent :
      VEOLIA ENVIRONNEMENT
            DRH - SO                 VEOLIA ENVIRONNEMENT Stock Option Plan of February 2001
       36-38 avenue Kleber
      75799 PARIS Cedex 16
              Fax :
----------------------------------
------------------------------------------------------------------------------------------------------------------------------------
                                          DEMANDE DE LEVEE IRREVOCABLE ET DE VENTE CASHLESS
                                      FINANCEMENT ASSURE PAR LE PRODUIT DE LA VENTE DES ACTIONS
                                      REQUEST FOR THE IRREVOCABLE EXERCISE OF OPTIONS AND SALE
                                      FINANCING PROVIDED BY THE NET PROCEED OF THE SHARES SALE
------------------------------------------------------------------------------------------------------------------------------------

------------------------------------------------------------------------------------------------------------------------------------
Nom et prenom (en majuscules)
Name and forename (in capitals)
------------------------------------------------------------------------------------------------------------------------------------

Date et lieu de naissance               |___/___/_____|      |_____________________________| |____| |__________________________|
(mention obligatoire)                    Date de naissance      Lieu de naissance : Ville, Departement, Pays
Date and place of birth                  Date of birth                Place of birth : Town, County, Country
(compulsory mention)
------------------------------------------------------------------------------------------------------------------------------------
Nationalite / Nationality
------------------------------------------------------------------------------------------------------------------------------------
Numero de Securite Sociale              |___|___|___|___|____|____|
(for French resident only)
------------------------------------------------------------------------------------------------------------------------------------
Adresse du domicile fiscal
Address of tax domicile
------------------------------------------------------------------------------------------------------------------------------------
Adresse courrier (si differente)
Postal address (if different)
------------------------------------------------------------------------------------------------------------------------------------
</TABLE>

ayant recu du Directoire de la societe VEOLIA ENVIRONNEMENT, en date du 8
fevrier 2001, une attribution d'options de souscription d'actions VEOLIA
ENVIRONNEMENT au prix d'exercice de ............(euro), declare demander la
levee irrevocable(1) des options dont je suis titulaire et en consequence
souscrire .............................actions VEOLIA ENVIRONNEMENT.
Pursuant to the decision taken by the Board of Directors of VEOLIA ENVIRONNEMENT
on February 8, 2001 to allot an option to subscribe to VEOLIA ENVIRONNEMENT
shares at an exercise price o(euro)................, hereby request the
irrevocable exercise(1) of the options held in my name and, accordingly,
subscribe to..................................... VEOLIA ENVIRONNEMENT shares.

FORME JURIDIQUE DES TITRES / SHARE REGISTRATION

Les actions VEOLIA ENVIRONNEMENT issues de ma levee d'options seront inscrites
au moment de leur levee au nominatif pur sur un compte a mon nom aupres du
service actionnaires de la SOCIETE GENERALE.
The VEOLIA ENVIRONNEMENT shares received upon the exercise of the above options
are to be held in registered form in an account opened in my name at the Issuers
Department held by the SOCIETE GENERALE.

CONVERSION AU PORTEUR ET ORDRE DE VENTE DES ACTIONS / TRANSFER INTO BEARER AND
SALE ORDER FORM

o      Au marche
       Market order (order at best)

DENOUEMENT DE L'OPERATION DE LEVEE - VENTE /COMPLETION OF THE EXERCISE - SALE
Je demande que le montant de la vente - apres deduction de la somme reglee a
VEOLIA ENVIRONNEMENT pour la souscription des options et la commission relative
au cashless, des taxes, des frais de courtage et commissions soit verse sur mon
compte : I request the income of the sale- after deducting the sum paid to
VEOLIA ENVIRONNEMENT for exercising the options and cashless commission, taxes,
brokerage fees and handling commission to be credited on my account:

-----------
(1) Cet ordre de levee d'options est irrevocable et donne lieu a un reglement a
la date de signature./The instruction to exercise the options is irrevocable and
payment is due upon signature.

<PAGE>

<TABLE>
<S>                               <C>                            <C>                               <C>

------------------------------------------------------------------------------------------------------------------------------------
Coordonnees bancaires d'un compte en France (joindre un releve d'identitebancaire (RIB), postal (RIP) ou Caisse d'Epargne (RICE) :

Nom de la banque :..................................................................................................................

  Code banque                      Code guichet                    Numero de compte                Cle

------------------------------------------------------------------------------------------------------------------------------------
Coordonnees bancaires d'un compte hors de France / Bank information on an account abroad :

Reference codee de la banque : |__|__|__|__|__|__|__|__|__|__| Reference codee du guichet ou agence : |__|__|__|__|__|
Coded reference of the bank:                                   Coded reference of the branch or agency:

Reference du compte premiere partie / Reference of the account first part :|__|__|__|__|__|__|__|__|__|__|__|__|__|__|__|__|__|__|

Reference du compte deuxieme partie : |__|__|__|__|__|__|__|__|__|__| Element de controle final : |__|__|__|__|__|
Reference of the account second part:                                 Element of final control:

Code SWIFT (ou code BIC) / SWIFT code (or BIC code) : |__|__|__|__|__|__|__|__|__|__|__|

Nom de la banque / Name of the bank :
|__|__|__|__|__|__|__|__|__|__|__|__|__|__|__|__|__|__|__|__|__|__|__|__|__|__|__|__|__|__|__|__|__|__|__|
Nom et/ou adresse de l'agence / Name and/or address of branch/agency :

|__|__|__|__|__|__|__|__|__|__|__|__|__|__|__|__|__|__|__|__|__|__|__|__|__|__|__|__|__|__|__|__|__|__|__|__|__|__|__|__|__|__|__

|__|__|__|__|__|__|__|__|__|__|__|__|__|__|__|__|__|__|__|__|__|__|__|__|__|__|__|__|__|__|__|__|__|__|__|__|__|__|__|__|__|__|__

Fait a / done at :............., Date / Date :................   Signature(2) :            Visa  de la  Societe / Company stamp :

-----------
(2) Important : Faire preceder la signature de la mention manuscrite "Bon pour
souscription de (x) actions VEOLIA ENVIRONNEMENT". / Important : signature to be
preceded by the following hand-written text : "Bon pour souscription de (x)
actions VEOLIA ENVIRONNEMENT" ('Valid for the subscription to (x) VEOLIA
ENVIRONNEMENT shares>>)
</TABLE>EXHIBIT 4.3

<PAGE>

SHARE SUBSCRIPTION OPTION PLAN
------------------------------
Adopted during Management Board meeting of January 28, 2002
-----------------------------------------------------------

                             STOCK OPTION PLAN RULES

                                  JANUARY 2002

<PAGE>

          Vivendi Environnement Stock Options Plan Rules - January 2002

                                  Introduction

     Plan for purchase of (or subscription for) shares - definition

     A plan for purchase of (or subscription for) shares shall be a scheme
     whereby a company grants to employees and/or officers of a parent company
     and/or companies affiliated thereto, the option to purchase (or to
     subscribe for) existing or new shares, for a certain period, at a price
     that is determined at the time of grant and that remains fixed for the
     whole of that period (except for adjustments described below).

     The persons concerned thus participate in Vivendi Environnement's
     achievements through the increase in the value of the security on the stock
     market even before becoming shareholders.

     Furthermore, the financial benefit derived from the exercise of the option
     right and from the subsequent disposal of the shares is dealt with under
     tax rules that are specific to such options and that are also dependant
     upon the beneficiary's tax residence status.

I.   Features of options and terms of grant

     Number of shares subject to options
     -----------------------------------

     Pursuant to the authority of the General Meeting of the shareholders held
     on 21 June 2000, the Executive Board of Vivendi Environnement shall fix,
     for each beneficiary, the number of options granted. This number shall be
     notified to the beneficiaries by letter. As the options are irrevocable,
     the number and the price shall not be altered during the term of the
     options, except in the case of adjustments referred to below (cf. page 3).
     A grant of further options may arise only from a further resolution of the
     Executive Board.

     Features of options
     -------------------

     Except on death, options shall be unassignable and shall not be subject to
     attachement.

     The exercise of options shall be voluntary as far as the beneficiary is
     concerned.

     For US beneficiaries, options granted shall give entitlement to American
     depository Shares (ADSs). Such options shall be treated as "NSOs"
     (non-statutory stock options) unless the letter of grant specifies that the
     options shall be "ISOs" (incentive stock options).

     Term of options and time-limit for exercise
     -------------------------------------------

     Options shall be granted irrevocably for a term of 8 years.

     The Executive Board, or its Chairman by delegation, shall fix the terms for
     the acquisition and exercise of options. Any option unexercised at the end
     of the 8-years term shall lapse.

     Purchase price
     --------------

     The price fixed for the purchase of shares by beneficiaries shall be
     determined at the date on which the options are granted by the Executive
     Board within the limits fixed by the law and the authority given by the
     General Meeting.

     For beneficiaries receiving options giving entitlements to ordinary shares
     listed on the Paris Stock Exchange, the exercise price shall be fixed in
     Euros. The exercise price has been fixed at 37.53 Euros, corresponding to
     the mean of the 20 stock market prices preceding the Executive Board
     Meeting on 28 January 2002.

     For beneficiaries receiving options giving entitlement to ADSs listed on
     the New York Stock Exchange, the exercise price shall be fixed in dollars.
     The exercise price has been fixed at 33.26 dollars, corresponding to the
     means of the 20 stock market prices preceding the Executive Board Meeting
     on 28 January 2002.

     Adjustments to the purchase price
     ---------------------------------

     By law, this price shall be unalterable during the term of the option.

     However, if Vivendi Environnement carries out during this period certain
     financial transactions that impact the capital, the Executive Board shall
     effect an adjustment to the price and to the number of shares subject to
     options that remain unexercised, so that the total value of the number of
     options granted to each beneficiary remains constant. The method for
     calculating the said adjustment shall be established by law. The Executive
     Board shall apply this as required.

     The transactions affected by such adjustments shall be principally:

          o    cash capital increases reserved for shareholders.

          o    capital increases by capitalisation of reserves, profits or
               shares premium account and issue of bonus shares.

          o    issues of convertible bonds or exchangeable bonds reserved for
               shareholders.

          Other cases of adjustment of the exercise price are provided for in
          the legislation, for more unusual financial transactions (distribution
          of reserves, capital reduction because of losses...).

     You are reminded that neither the plan rules nor the letter of grant shall
     confer upon the beneficiary any right under his or her employment contract.

II.  Terms for acquisition of options

     Options shall be acquired annually in 1/3 tranches over three years (except
     for the special conditions, or except for the exemption referred to below).
     They may be exercised from the 4th year onwards.

     On leaving for any reason whatever (except on death), beneficiaries may,
     until the expiry of the term of validity of the plan, exercise only those
     options acquired before such leaving (including those that have been
     acquired under an exemption) pursuant to the terms of exercise referred to
     below.

     For French beneficiaries, such acquisition by 1/3 tranches shall not apply
     on death, disability (2nd and 3rd categories of Article L.341.4 of the
     French Social Security Code) or retirement. In such cases, the beneficiary
     (or his or her successors in title) shall acquire 100% of the options
     granted.
     On the beneficiary's death, the law provides that his or her heirs may
     exercise his or her options within a period of six months from the date of
     death, but this time-limit shall not have the effect of extending the
     original term of validity of the options if this expires sooner.

     For beneficiaries resident in the United Sates of America who have received
     options giving entitlement to ADSs, the heirs may exercise only the options
     that have been acquired (including those that have been acquired under an
     exemption) until the term of validity of the plan expires.

     However, in the event of a public offering, the options granted shall be
     immediately vested and exercisable and the underlying shares assignable
     without any condition. Furthermore, the Chairman who refers such once a
     year to the officers Committee may, in exceptional circumstances, grant
     exemption from the terms of acquisition referred to above.

III. Terms for exercise of options

     In order to exercise his or her options, the beneficiary shall make the
     declaration in writing to Vivendi Environnement, for the attention of the
     Human Resources Department, accompanying such declaration with an option
     exercise form (which shall also serve as a purchase form), and with payment
     of the price.

     A form shall be handed for this purpose to each beneficiary, which shall be
     completed, dated and signed, whenever options are exercised, and returned
     to Vivendi Environnement. This document is attached as appendix 1 for all
     beneficiaries, except for beneficiaries resident in the United States of
     America.

     The latter shall complete, date, sign and return to Vivendi Environnement
     the form referred to in Appendix 2 (cashless exercise) or in appendix 3
     (exercise and purchase of shares).

     Payment of the price
     --------------------

     Full payment of the price shall generally be made by cheque, bank transfer
     or by any procedure established by the managing bank or financial
     institution and approved by Vivendi Environnement.

     Delivery of securities
     ----------------------

     On each exercise of options, the beneficiary shall state on the option
     exercise from the management method that he or she wishes to adopt for the
     shares acquired. It should be noted that the transfer of the shares and
     registration of such may take some time (up to eight days in the case
     registration as administered registered securities). Registration as "pure"
     registered securities shall be effected by the Registrar(1) appointed by
     Vivendi Environnement. Registration on an "administrated" registered
     securities account shall enable another manager to be chosen. It should be
     remembered however that management by a manager of "pure" registered
     securities accounts is without charge (no custody fee).

-------------
(1) BNP-PARIBAS-GIS Emetteurs - Les Collines de l'Arche-75450 Paris cedex 09

IV.  Details of purchased shares

     The shares shall mandatorily be in registered form.

     They shall be entitled of the dividend paid in the year in which they have
     been purchased provided however that the exercise shall take place at least
     five working days before the holding of the General Meeting of the
     shareholders that resolves to distribute such dividend.

     The shares arising from exercises shall be able to be traded immediately,
     except for beneficiaries who are French residents. The latter may dispose
     of shares arising from options only on the expiry of the tax "lock-in"
     period applicable to the plan, except where there are exemption(1) (in
     particular those referred to in Article 91 ter Schedule II to the French
     General Tax Code).

V.   Sensitive periods [insider trading]

     Beneficiaries shall comply with the regulations applicable in this regard
     in accordance with the legislation in force in the country with respect to
     the use of privileged information(2).

     In any event , beneficiaries wishing to dispose of their shares shall
     ensure, on their responsibility, that they meet their obligation to
     abstain, when, in the course or context of their duties, they have
     knowledge or are deemed to have knowledge of non-public information that
     may influence the share's stock market price.

     Moreover, beneficiaries shall not dispose of shares arising from the
     exercise of options for a period of 30 calendar days before and 1 day after
     the Executive Board Meeting to approve Vivendi Environnement's half-yearly
     and annual accounts. This 30-days abstention period may be amended at any
     time by Vivendi Environnement within the limits fixed by law.

VI.  Application of the Rules

     The services of the Human resources Department shall be at your disposal
     for any matter relating to these rules and their application. The
     information able to be given by the various services of Vivendi
     Environnnement (Human Resources Department, Legal Department and Finance
     Department) shall be limited to the supply of purely factual information
     and shall not take the form of legal, financial or tax advice that renders
     the said services of Vivendi Environnement liable in any way.

------------------
(1) The time-limit is currently 4 years for options granted subsequent to 27
    April 2000. Such time-limits shall not apply where express exemption is
    granted by the Board of Directors and for the cases referred to in article
    91 ter schedule II to the French General Tax Code, namely:
    - -- - dismissal or retirement of the holder, with the specific provisio
    that the options must have been exercised at least three months before the
    date of occurrence of the event.
    - disability of the holder corresponding to classification under the second
    or third category prescribed in Article L.314.4 of the French Social
    Security Code.
    -   death of the holder.

(2) Order of 28 September 1967. COB Regulation No. 90-08 and Regulations of the
    U.S Securities and Exchange Commission.

<PAGE>

VII. Amendments to the Rules

     Vivendi Environnement may at any time, on a resolution of the Executive
     Board and after receiving the opinion where appropriate of the Officers
     Committee, amend the provisions of these rules.

     Amendments that would not be more favourable overall shall be the subject
     of a written agreement between the beneficiary and Vivendi Environnement.

VIII. Compliance

     For US beneficiaries, the exercise of options shall be conditional upon
     prior registration of the shares with the Securities and Exchange
     Commission pursuant to the US regulations.

IX.  Liability of the Company

     Vivendi Environnement shall not be liable for the non-issue of shares or of
     securities resulting from a failure to obtain the necessary regulatory
     permission.

X.   Applicable law

     The plan shall be subject to French law (Article L.225-177 of the French
     New Commercial Code and Decree of 23 March 1967).

XI.  Translations

     This document shall be available at the services of the Human Resources
     Department of Vivendi Environnement in French, English, German and Spanish,
     but only the French version shall be authentic.

<PAGE>

                                   Appendices
                                   ----------

1. Option exercise declaration for resident beneficiaries who are non-US
citizens.

2. Declaration (cashless exercise) for beneficiaries resident in the United
States.

<PAGE>

---------------------------------------
Document a adresser par courrrier a                   ------------------------
   Document to bent by mail to:
     VEOLIA ENVIRONNEMENT                                  Levee simple
        DRH-SO
     36-38 avenue Kleber                              ------------------------
     75799 PARIS Cedex 16
   Fax: + 33 (0)1 71 75 1041
---------------------------------------

                    Options allotted by VIVENDI ENVIRONNEMENT

                 REQUEST FOR THE IRREVOCABLE EXERCISE OF OPTIONS
FINANCING PROVIDED BY THE BENEFICIARY UPON SIGNATURE OF THE PRESENT FORM

---------------------------------------------------------------------------
Name and forename (in capitals)
---------------------------------------------------------------------------
Date and place of birth
---------------------------------------------------------------------------
Nationality
---------------------------------------------------------------------------
Address of tax domicile
---------------------------------------------------------------------------
Postal address (if different)
---------------------------------------------------------------------------

Pursuant to the decision taken by the Executive Committee of VIVENDI
ENVIRONNEMENT on ________________________________to allot options to purchase
shares at an exercise price of (euro)________, I hereby request the irrevocable
exercise (1) of____________VIVENDI ENVIRONNEMENT options held in my name and,
accordingly, purchase an equivalent number of VIVENDI ENVIRONNEMENT shares.

o  PAYMENT (number of shares purchased to x exercise price)

I enclose a bank or post office cheque made out to BNP PARIBAS Securities
Services in an amount of (euro)______________representing the amount due on the
exercise of the above options.

o  SHARE REGISTRATIONS

The VIVENDI ENVIRONNEMENT shares received upon the exercise of the above options
are to be held in registered form in an account opened in my name at the Issuers
Department of BNP PARIBAS Securities Services.

Signed on________________________at_______________________         Company Stamp

Signature(2)

_______________________________________

(1)  The instruction to exercise the options is irrevocable and payment is due
     upon signature.

(2)  Important : signature to be preceded by the following hand-written text :
     [Bon pour achat de (x) actions VIVENDI ENVIRONNEMENT]

<PAGE>

------------------------------------------           Levee cashless
    Document a adresser par courrier a
    Document to be sent by mail to :                ----------------------------
           VEOLIA ENVIRONNEMENT                     Enclosed Bank Identification
                 DRH-SO
           36-38 avenue Kleber
          75799 PARIS Cedex 16                      ----------------------------
       Fax: + 33 (0)1 71 75 10 41

------------------------------------------

                    Options allotted by VIVENDI ENVIRONNEMENT

             REQUEST FOR THE EXERCISE OF OPTIONS AND SALE OF SHARES
         TO BE FINANCED OUT OF THE PROCEEDS RAISED BY THE SALE OF SHARES

--------------------------------------------------------------------------------
Name and fist name (in capitals)
--------------------------------------------------------------------------------
Date and place of birth (in capitals)
--------------------------------------------------------------------------------
Nationality
--------------------------------------------------------------------------------
Registered for tax purposes at
--------------------------------------------------------------------------------
Postal address (if different from the a)
--------------------------------------------------------------------------------

Pursuant to the decision taken by the Executive Committee of VIVENDI
ENVIRONNEMENT on _________________________________to allot options to purchase
shares at an exercise price of (euro)__________, I hereby request the
irrevocable exercise(1) of________________________VIVENDI ENVIRONNEMENT options
held in my name and, accordingly, purchase an equivalent number of VIVENDI
ENVIRONNEMENT shares.

o  SHARE REGISTRATION

The VIVENDI ENVIRONNEMENT shares received upon the exercise of the above options
are to be held in registered form in an account opened in my name at the Issuers
Department of BNP PARIBAS Securities Services.

o  SALE ORDER

I hereby request that________________________VIVENDI ENVIRONNEMENT shares(2) be
converted into bearer form and sold, I instruct you to sell these shares " AT
THE MARKET PRICE".

o  COMPLETION OF THE EXERCISE/SALE

I request the income of the sale after deducting the sum paid to VIVENDI
ENVIRONNEMENT for exercising the options as well as, taxes, brokerage fees and
handling commission - be transferred in euro on the account detailed in the
enclosed Bank Identification statement.

Signed on____________________at______________________              Company Stamp

Signature
(signature to be preceded by the following hand-written text : "valid for the
purchase of (x) VIVENDI ENVIRONNEMENT shares").

------------------------
(1)  The instruction to exercise the options is irrevocable

(2)  The number of shares sold must exceed by 10 % the number require to cover
     the purchase amount

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