EQUITY AWARD GRANT POLICY

Exhibit 10.27

EQUITY AWARD GRANT POLICY

I. General Scope

This Equity Award Grant Policy (this “Policy”) establishes the process for Monotype Imaging Holdings Inc. (the “Company”) to follow when it grants shares of restricted stock, stock options or other equity-based awards (collectively, “Equity Awards”) to an officer or employee of the Company or any of its direct or indirect subsidiaries (each, an “Employee”) pursuant to the Monotype Imaging Holdings Inc. Amended and Restated 2007 Stock Option and Incentive Plan, as amended from time to time (the “2007 Plan”), or any other equity compensation plan of the Company that the Board of Directors or the Management Development and Compensation Committee (the “Compensation Committee”) determines to be subject to this Policy (collectively, with the 2007 Plan, the “Plans”). A list of the Plans is set forth on Exhibit A. This Policy does not apply to grants of Equity Awards to non-employee directors or other eligible persons under the Plans who are not Employees. Additionally, notwithstanding the foregoing, in recognition of the special considerations that may apply to certain types of performance-based Equity Awards, this Policy does not apply automatically to grants of Equity Awards that are made or earned upon the achievement of previously determined performance-based parameters under the Plans.

II. Grant Date of Equity Awards

While the Plans may permit the granting of Equity Awards at any time, the Company will generally only grant Equity Awards on a regularly scheduled basis. Doing so will enhance the effectiveness of the Company’s internal control over its Equity Award grant process and alleviate some of the burdens related to accounting for Equity Awards in accordance with Financial Accounting Standards Board Accounting Standards Codification Topic 718 (“ASC 718”). If extraordinary circumstances arise such that the Compensation Committee or the Board of Directors determines it is advisable to grant an Equity Award at a time other than as set forth below, the Compensation Committee may consider and approve any such grant.

Initial and Promotion Grants

Grants of Equity Awards made in conjunction with the hiring of a new Employee or the promotion of an existing Employee will be made on a regular monthly basis on the fifteenth day of each month, unless the fifteenth is not a day on which the NASDAQ Global Select Market (or such other market on which the Company’s common stock is then principally listed) is open for trading in which case it shall be the next such trading day (each, a “Monthly Approval Date”). These initial and promotion grants shall be made effective (each, a “Grant Date”) as follows:

Annual Grants

Grants of Equity Awards to existing Employees (other than in connection with a promotion) will be made, if at all, on an annual basis. It is the intention of the Compensation Committee to consider and approve any such annual grants at a meeting to be held as soon as all necessary information is available to the Compensation Committee (the “Annual Approval Date”). These annual grants shall be made effective (again, a “Grant Date”) as follows:

III. Approval of Equity Awards

Compensation Committee Approval

Other than as set forth in the CEO Guidelines described in the next section, all Equity Award grants must be approved in advance by the Compensation Committee. All Equity Award grants approved by the Compensation Committee should be discussed and voted upon at an in-person or telephonic meeting of the Compensation Committee. The minutes of such meetings at which Equity Award grants are approved will list the name of each grantee, the type and amount of Equity Awards he or she is granted, the scheduled grant date in accordance with this Policy, the vesting schedule for the Equity Awards and any other non-standard material terms. If restricted stock is approved, the amount of the grant may be denominated in dollars or may be approved as a specific number of shares. If stock options are approved, the amount of the grant will be either the number of shares subject to the stock option or the fair market value of the award calculated under ASC 718. If extraordinary circumstances arise necessitating such action, the Compensation Committee may approve an Equity Award grant by unanimous consent in writing or by electronic transmission (rather than as part of a meeting). Any such consent in writing or by electronic transmission will be effective as of the latest date it is signed or transmitted by all members of the Compensation Committee, respectively, and, therefore, the Grant Date may not be prior to such latest date.

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CEO Guidelines

The Company’s Chief Executive Officer (the “CEO”) shall have authority to grant Equity Awards subject to the following guidelines:

Notes:

The CEO shall report any award made pursuant to the authority above to the Compensation Committee at its next regularly scheduled meeting.

With respect to any Equity Award not described above, the Board of Directors and the Compensation Committee will provide guidelines to the CEO from time to time setting forth the amounts and types of Equity Awards under the 2007 Plan that may be granted to Employees in conjunction with their hiring or promotion, in all cases, consistent with the terms of the 2007 Plan. All such Equity Awards shall be recommended by the CEO to the Compensation Committee and shall remain subject to approval by the Compensation Committee.

IV. Equity Award Pricing and Calculation

All Equity Awards will be priced and calculated on the Grant Date in the manner described below.

Restricted Stock

The number of shares of restricted stock that are issued will be calculated by dividing the dollar value of the approved award by the closing market price on the NASDAQ Global Select Market (or such other market on which the Company’s common stock is then principally listed) of a share of the Company’s common stock on the Grant Date, unless a specific number of shares to be awarded has been approved.

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Stock Options

The exercise price of all stock options will be equal to (or, if specified in the approval of the stock option award, greater than) the closing market price on the NASDAQ Global Select Market (or such other market on which the Company’s common stock is then principally listed) of a share of the Company’s common stock on the Grant Date. If the amount of the award is to be determined by reference to a fair value calculated under ASC 718, then the number of shares to be subject to such stock option shall be determined based on such fair value, the exercise price determined in accordance with the preceding sentence and the approved valuation assumptions, subject to any other limits on the number of shares that may be subject to such stock option.

V. Informing Recipients of Equity Awards

With respect to all Equity Awards, the Company will provide a notice to each Equity Award grantee promptly after the approval of such Equity Award. The awards are deemed to be made on the date the key terms of the grants are communicated to Grantee either (i) by email, (ii) in writing, or (iii) through posting in the Grantee’s online E*TRADE brokerage account with respect to Company equity awards. The Company will maintain appropriate records of the Equity Award Agreements, either electronically or via another method of the Company’s choice, at the Company’s principal office, at the offices of the Company’s subsidiaries or through a vendor of the Company’s choice.

VI. Miscellaneous

The Compensation Committee has the sole power and authority to interpret the terms of this Policy and such interpretations will be binding on all persons. This Policy may be modified or amended at any time by the Board of Directors or the Compensation Committee.

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EXHIBIT A

Plans

Amended and Restated 2007 Stock Option and Incentive Plan

2010 Inducement Stock Plan

A-1