Grappled
You are restrained by a creature, effect, or trap. You can’t move, and you take a -2 penalty to your Armor Class, attack rolls, Reflex saving throws, initiative checks, and Dexterity-based skill and ability checks, except those made to grapple your opponent in turn or to escape a grapple (see Grapple on page 246). In addition, you can’t take actions that require two hands (or other limbs) to perform. You can’t make attacks of opportunity.
You can’t use Stealth to hide from the creature grappling you, even if a special ability allows you to hide when you normally couldn’t. If you become invisible, through a spell or other ability, you gain a +2 circumstance bonus to your check to escape being grappled, but you receive no other benefit.
Source
Core Rulebook pg. 276
Effect
bonus -2 to [character.kac, character.eac, character.attack.melee, character.attack.ranged, character.attack.thrown, character.reflex, character.initiative, character.acrobatics, character.piloting, character.sleightOfHand, character.stealth, character.dexterity.modifier] as misc; if {character.speed.land > 0} then bonus (character.speed.land * -1) to character.speed.land as misc; if {character.speed.burrow > 0} then bonus (character.speed.burrow * -1) to character.speed.burrow as misc; if {character.speed.swim > 0} then bonus (character.speed.swim * -1) to character.speed.swim as misc; if {character.speed.climb > 0} then bonus (character.speed.climb * -1) to character.speed.climb as misc; if {character.speed.fly.clumsy > 0} then bonus (character.speed.fly.clumsy * -1) to character.speed.fly.clumsy as misc; if {character.speed.fly.average > 0} then bonus (character.speed.fly.average * -1) to character.speed.fly.average as misc; if {character.speed.fly.perfect > 0} then bonus (character.speed.fly.perfect * -1) to character.speed.fly.perfect as misc;