Quick Grapple Question

[Gruingar de'Morcaine]

Monk/Rogue has Improved Unarmed Strike, Improved Grapple, and Sneak Attack

If he successfully grapples, opponent is denied dex bonus.
Can now unarmed strike and get sneak attack dice to up the damage. Correct?
Could even just grapple check for damage and get sneak attack dice to up the damage. Correct?

[RedDogMT]

Quick answer:
An opponent is NOT denied his Dex bonus when he has the grappled condition. His Dex is reduced by 4. Therefore, you cannot sneak attack in your scenario.

[Gruingar de'Morcaine]

Whoops!

We have been doing that wrong forever. Always thought you lost your dex bonus.

Thanks muchly