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                                                    EXHIBIT 10(z)
                           TONKA CORPORATION
                          1027 Newport Avenue
                     Pawtucket, Rhode Island 02862


                                             March 21, 1994

Bruce L. Stein
1026 Hatch Street
Cincinnati, Ohio 45202

Dear Bruce:

     On behalf of Tonka Corporation, I am pleased to confirm that, in 
recognition of the superlative 1993 performance of the Kenner 
Products Division of Tonka Corporation and your outstanding 
leadership as President of that division, you have been awarded a 
special and extraordinary bonus in the amount of $1,000,000, payable 
as follows:

      1)   $250,000 paid on or before March 15, 1994, receipt of
           which you hereby acknowledge;
      2)   $250,000 payable on March 15, 1995, together with
           accrued interest;
      3)   $250,000 payable on March 15, 1996, together with
           accrued interest; and
      4)   $250,000 payable on March 15, 1997, together with
           accrued interest;

provided, however, that you shall be eligible to receive the payments 
described in clauses 2, 3 and 4 above (collectively the 
"Installments" and individually an "Installment") only if you are 
employed by Tonka Corporation or an affiliate thereof (the 
"Corporation") on the date the Installment is otherwise payable.  
Interest shall accrue on the unpaid portion of the bonus from March 
15, 1994 at the Prime Rate, as reported in the Wall Street Journal, 
and all such accrued and unpaid interest shall be paid annually as 
part of an Installment.

     Notwithstanding the foregoing, if you cease to be employed by 
the Corporation as a result of:

        (a)  your being afflicted with any physical or mental
             condition which would qualify you for a disability
             benefit under the Corporation's long term disability
             plan, or

        (b)  your death, 

unpaid Installments will still continue to be paid to you, your
personal or legal representatives, executors, administrators, heirs, 
distributees, devisees and legatees, as the case may be.

     In addition, if you cease to be an employee of the Corporation 
as a result of the involuntary termination of your employment by the 
Corporation, you shall receive, within 30 days of such termination, 
payment in full of all unpaid Installments, 

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except if such involuntary termination was based upon (a) your wilful 
and continued failure substantially to perform your duties and 
obligations (other than any such failure resulting from your 
incapacity due to physical or mental illness) or (b) your wilful 
misconduct which is materially injurious to the Corporation, 
monetarily or otherwise.  For purposes of the previous sentence, no 
act, or failure to act, on your part shall be considered "wilful" 
unless done, or omitted to be done, by you in bad faith and without 
reasonable belief that your act or omission was in the best interest 
of the Corporation.

     You hereby acknowledge that the extraordinary bonus described 
herein is in lieu of, and substitution for, any bonus to which you 
may have otherwise been entitled to receive with respect to fiscal 
1993 under the Corporation's normal management incentive bonus 
program.

     You hereby acknowledge that you understand and agree that if you 
voluntary terminate your employment with the Corporation prior to the 
date any Installment is otherwise payable hereunder, you shall not be 
entitled to receive such Installment or any future Installments from 
the Corporation.

     All payments made by the Corporation pursuant to this letter
agreement shall have deducted or withheld therefrom all amounts as 
shall be required by applicable law and regulation.

     Hasbro, Inc. (the "Guarantor") hereby guarantees the obligations 
of Tonka Corporation set forth in this letter.

     If the foregoing is acceptable to you, please so signify by
signing a copy of this letter below and returning it to the
Corporation.

     Again, let me offer my congratulations on a job very well done.
                                     Very truly yours,

                                     TONKA CORPORATION

                                     By: /s/ Alfred J. Verrecchia
                                         ------------------------
                                        Alfred J. Verrecchia
                                        Executive Vice President

                                     HASBRO, INC., as Guarantor

                                     By: /s/ Alan G. Hassenfeld
                                        -----------------------
                                        Alan G. Hassenfeld
                                        Chairman and Chief
                                        Executive Officer
ACCEPTED AND AGREED:

/s/ Bruce L. Stein
- ------------------
Bruce L. Stein
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