Differentiate between "Direct Route for ESOP" and "Trust Route for ESOP".

Direct Route for ESOPs Company forms a compensation committee and define the eligibility criteria of ESOPs. Company issue fresh shares for ESOPs. After vesting period employees can exercise the option. On exercise of an option company issues the shares to the eligible employees. Trust Route for ESOPs Company forms an Employee Welfare Trust. Company grants loan to the trust for subscribing shares. Company issues fresh shares to the Trust and option to the Eligible Employees. Employees exercise the options. Trust transfers the Shares to the employee upon receipt of exercise price. Trust repays the loan to the company.