<PAGE>

                                                                   EXHIBIT 10.13
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DATE:  January 28, 1998

TO:  Petrie Stores Liquidating Trust     FROM:  Canadian Imperial Bank of
                                                Commerce

ATTENTION:  Stephanie R. Joseph          CONTACT:  Gina S. Ghent

PHONE NUMBER:  212-754-3086              PHONE NUMBER:  212-856-6538

FACSIMILE NUMBER:  212-754-3087          FACSIMILE NUMBER:  212-885-4378

RE:  Equity Collar Confirmation
     CIBC Reference Number:  NY EQT 0522

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THIS CONFIRMATION SUPERSEDES AND REPLACES ANY PREVIOUSLY EXECUTED CONFIRMATION
OF THIS TRANSACTION.  FOR EASE OF REFERENCE, ALL CHANGES ARE IN BOLD TYPE.

The purpose of this letter agreement (the "Confirmation") is to confirm the
terms and conditions of the Transaction entered into between Canadian Imperial
Bank of Commerce ("CIBC") and Petrie Stores Liquidating Trust ("Counterparty")
on the Trade Date specified below (the "Transaction").  This Confirmation
constitutes a "Confirmation" as referred to in the Master Agreement specified
below.

The definitions and provisions contained in the 1996 ISDA Equity Derivatives
Definitions (the "Equity Definitions"), as published by the International Swaps
and Derivatives Association, Inc., are incorporated into this Confirmation.  In
the event of any inconsistency between the Equity Definitions and this
Confirmation, this Confirmation will govern.

1.  This Confirmation supplements, forms part of, and is subject to, the Master
    Agreement dated as of November 19, 1997, as amended and supplemented from
    time to time (the "Agreement"), between CIBC and Counterparty. All
    provisions contained in the Agreement shall govern this Confirmation except
    as expressly modified below.

    This Transaction shall be subject to all laws, rules and regulations
    applicable thereto, including, but not by way of limitation, the provisions
    of the Securities Act of 1933 (the "Act"), and the Securities Exchange Act
    of 1934 (the "Exchange Act"), as amended and all rules and regulations,
    promulgated or to be promulgated thereunder. The parties hereto each
    acknowledges that the options acquired under this Transaction will not be
    registered under the Act and are being sold in reliance upon the exemption
    for private placements pursuant to Section 4(2) of the Act.

2.  The terms of the particular Transaction to which this Confirmation relates
    are as follows:

GENERAL TERMS:
    AGENT:                         CIBC, New York Agency, has acted as agent in
                                   confirming this Transaction.

    TRANSACTION I:
    --------------
    Trade Date:                    November 26, 1997

    Effective Date:                November 26, 1997

    Option Style:                  European

    Option Type:                   Call

    Seller:                        Counterparty

    Buyer:                         CIBC
<PAGE>

    Shares:                        The common shares of stock issued by Toys "R"
                                   Us, Inc. (New York Stock Exchange Ticker
                                   Symbol = "TOY").

    Number of Options:             2,000,000

    Option Entitlement:            1 Share per Option

    Multiple Exercise:             Inapplicable

    Strike Price:                  47.1137

    Exchange:                      The New York Stock Exchange or any successor
                                   to such exchange or quotation system.

    Related Exchange:              Chicago Board Options Exchange

    Calculation Agent:             CIBC. Whenever the Calculation Agent is
                                   required to act, it will do so in good faith,
                                   and its determinations and calculations will
                                   be binding in the absence of manifest error.

    TRANSACTION II:
    ---------------
    Trade Date:                    November 26, 1997

    Effective Date:                November 26, 1997

    Option Style:                  European

    Option Type:                   Put

    Seller:                        CIBC

    Buyer:                         Counterparty

    Shares:                        The common shares of stock issued by Toys "R"
                                   Us, Inc. (New York Stock Exchange Ticker
                                   Symbol = "TOY").

    Number of Options:             2,000,000

    Option Entitlement:            1 Share per Option

    Multiple Exercise:             Inapplicable

    Strike Price:                  30.7264

    Exchange:                      The New York Stock Exchange or any successor
                                   to such exchange or quotation system.

    Related Exchange:              Chicago Board Options Exchange

    Calculation Agent:             CIBC. Whenever the Calculation Agent is
                                   required to act, it will do so in good faith,
                                   and its determinations and calculations will
                                   be binding in the absence of manifest error.

                                       2
<PAGE>

PROCEDURE FOR EXERCISE:
    Expiration Time:               4:00 p.m. (local time in New York).

    Expiration Date:               December 3, 1999

    Automatic Exercise:            Applicable

    Settlement Price:              The actual average price per share of the
                                   Shares purchased by CIBC to close out its
                                   hedging position during the period extending
                                   from the fifth (5/th/) Exchange Business Day
                                   immediately preceding the Exercise Date
                                   through the Exercise Date, such period
                                   subject to modification upon mutual agreement
                                   of CIBC and Counterparty.

    Put Seller's Telephone         Mr. Eamon McCooey
    Number and Telex and/or        (P) 212-885-4361
    Facsimile Number and Contact   (F) 212-856-4266
    Details for Purpose of
    Giving Notice:

COUNTERPARTY PHYSICAL              UPON WRITTEN NOTICE TO CIBC AT LEAST FIVE (5)
---------------------              EXCHANGE BUSINESS DAYS BEFORE THE EXPIRATION
SETTLEMENT OPTION:                 DATE, COUNTERPARTY MAY ELECT PHYSICAL
------------------                 SETTLEMENT PROVIDED THAT, AT THE TIME OF SUCH
                                              --------
                                   ELECTION, COUNTERPARTY DOES NOT HAVE ANY
                                   OUTSTANDING LOANS WITH CIBC IN RELATION TO
                                   THIS TRANSACTION.

                                   IF NO SUCH ELECTION IS MADE OR IN THE EVENT
                                   THAT THE ABOVE CONDITIONS ARE NOT MET, THEN
                                   CASH SETTLEMENT WILL BE THE MANNER OF
                                   SETTLEMENT AND THE "SETTLEMENT TERMS: CASH
                                                       ----------------------
                                   SETTLEMENT" SECTION SHALL APPLY.
                                   ----------

SETTLEMENT TERMS: PHYSICAL SETTLEMENT
-------------------------------------
    PHYSICAL SETTLEMENT:           APPLICABLE

    FAILURE TO DELIVER:            APPLICABLE

    ASSIGNMENT OF SETTLEMENT       NOTWITHSTANDING ANY OTHER PROVISION IN THIS
    OBLIGATION:                    CONFIRMATION TO THE CONTRARY REQUIRING CIBC
                                   TO PURCHASE, SELL, DELIVER OR RECEIVE ANY
                                   SECURITIES TO OR FROM THE COUNTERPARTY, CIBC
                                   MAY DESIGNATE ANY OF ITS AFFILIATES TO SO
                                   PURCHASE, SELL, DELIVER OR RECEIVE SUCH
                                   SECURITIES AND OTHERWISE TO PERFORM CIBC'S
                                   OBLIGATIONS IN RESPECT OF THIS TRANSACTION
                                   AND ANY SUCH DESIGNEE MAY ASSUME SUCH
                                   OBLIGATIONS. THE COUNTERPARTY NEED NOT BE
                                   NOTIFIED OF SUCH DESIGNATION AND SUCH
                                   DESIGNATION SHALL NOT RELIEVE CIBC OF ANY OF
                                   ITS OBLIGATIONS HEREUNDER. IF CIBC'S
                                   DESIGNEE SHALL HAVE PERFORMED THE OBLIGATIONS
                                   OF CIBC HEREUNDER, THEN CIBC SHALL BE
                                   DISCHARGED OF ITS OBLIGATIONS TO THE
                                   COUNTERPARTY TO THE EXTENT OF SUCH PERFOR-
                                   MANCE.

    CLEARANCE SYSTEM:              DEPOSITORY TRUST COMPANY ("DTC")

                                       3
<PAGE>

    DELIVERY OF SHARES:            COUNTERPARTY AGREES TO DELIVER FULLY REGIS-
                                   TERED, FREELY TRANSFERABLE SHARES.

SETTLEMENT TERMS: CASH SETTLEMENT
---------------------------------
    CASH SETTLEMENT:               APPLICABLE

    CASH SETTLEMENT AMOUNT:        AN AMOUNT, AS CALCULATED BY THE CALCULATION
                                   AGENT IN THE SETTLEMENT CURRENCY, EQUAL TO
                                   THE NUMBER OF OPTIONS EXERCISED ON THE
                                   EXPIRATION DATE MULTIPLIED BY (I) THE STRIKE
                                   PRICE DIFFERENTIAL, AND (II) ANY OPTION
                                   ENTITLEMENT SPECIFIED ABOVE

    STRIKE PRICE DIFFERENTIAL      AN AMOUNT EQUAL TO THE GREATER OF (I) THE
    (PUT):                         EXCESS OF THE STRIKE PRICE OVER THE
                                   SETTLEMENT PRICE, AND (II) ZERO.

    STRIKE PRICE DIFFERENTIAL      AN AMOUNT EQUAL TO THE GREATER OF (I) THE
    (CALL):                        EXCESS OF THE SETTLEMENT PRICE OVER THE
                                   STRIKE PRICE, AND (II) ZERO.

    CASH SETTLEMENT PAYMENT DATE:  THREE (3) CURRENCY BUSINESS DAYS AFTER THE
                                   VALUATION DATE

ADJUSTMENTS:
    Method of Adjustment:          Options Exchange Adjustment

    Additional Potential           The issuer of the Shares distributes a cash
    Adjustment Event:              dividend greater than $0.00 to shareholders
                                   of record during the term of the Transaction.

EXTRAORDINARY EVENTS:
    Share for Share:               Alternative Obligation, provided, however,
                                                           --------  -------
                                   that if the trading volatility of the New
                                   Shares differs such that CIBC is unable to
                                   maintain a leading position then CIBC shall
                                   have the right to terminate the Transaction
                                   in accordance with the provisions of
                                   Cancellation and Payment.

    Share for Other:               Cancellation and Payment.

    Share for Combined:            The Calculation Agent, at its discretion,
                                   will either (a) terminate the Option as of
                                   the Exchange Day immediately preceding the
                                   day on which such declaration is made ("Early
                                   Termination Date") and the Seller will pay
                                   to the Buyer an amount that the Calculation
                                   Agent reasonably determines would be payable
                                   by the Buyer to a Dealer in consideration of
                                   an agreement between the Buyer and such
                                   Dealer that has the effect of preserving for
                                   the Buyer the economic equivalent of the
                                   payment obligations of the parties under this
                                   Transaction, including but not limited to
                                   factors such as time decay and intrinsic
                                   value, that, but for the occurrence of the
                                   Early Termination Date, would have fallen
                                   due after the Early Termination Date, or (b)
                                   adjust the Strike Price,

                                       4
<PAGE>

                                   the Number of Options and any other relevant
                                   variable in a manner which will preserve the
                                   economic equivalent of the payment
                                   obligations of the parties under this
                                   Transaction that, but for the occurrence of
                                   the Early Termination Date, would have fallen
                                   due after the Early Termination Date.


Consequences of Nationalization    The Calculation Agent, at its discretion,
or Insolvency:                     will terminate the Option as of the Exchange
                                   Day immediately preceding the day on which
                                   such declaration is made ("Early Termination
                                   Date") and the Seller will pay to the Buyer
                                   an amount that the Calculation Agent
                                   reasonably determines would be payable by the
                                   Buyer to a Dealer in consideration of an
                                   agreement between the Buyer and such Dealer
                                   that has the effect of preserving for the
                                   Buyer the economic equivalent of the payment
                                   obligations of the parties under this
                                   Transaction, including but not limited to
                                   factors such as time decay and intrinsic
                                   value, that, but for the occurrence of the
                                   Early Termination Date, would have fallen due
                                   after the Early Termination Date.

3. ACCOUNT DETAILS:
   Payments to CIBC:
   ----------------
     Account for Payments:         Chase Manhattan Bank N.Y.
     For the Account of:           Canadian Imperial Bank of Commerce, Toronto
     Account No.:                  544-708-234
     ABA No.:                      021 000 021
     Attention:                    Financial Products

   Payments to Counterparty:
   ------------------------
    Account for Payments:          PLEASE ADVISE.
    For the Account of:
    Account No.:
    Attention:

4. OTHER PROVISIONS:
   Pledge:                         As security for the payment of all amounts
                                   and delivery of all securities due or that
                                   may become due from Counterparty to CIBC
                                   under each Transaction, Counterparty ("Credit
                                   Support Provider") has pledged, assigned,
                                   transferred and granted to CIBC a first lien
                                   on, and a security interest in, 2,000,000
                                   Shares (the "Pledged Collateral") in
                                   accordance with the terms of the Stock Pledge
                                   Agreement dated as of December 31, 1997 (the
                                   "Pledge Agreement").

   Credit Support Documentation:   Counterparty agrees to provide the following
                                   Credit Support Document: Pledge Agreement
                                   dated as of December 31, 1997.

                                       5
<PAGE>

   Governing Law:                  The Laws of the State of New York (without
                                   reference to the choice of law doctrine).

   Transfer:                       Unless otherwise specified in the Master
                                   Agreement, neither the Transaction nor any
                                   interest or obligation in or under the
                                   Transaction may be transferred (whether by
                                   way of security or otherwise) by either
                                   party without the prior written consent of
                                   the other party. Any purported transfer that
                                   is not in compliance with this provision will
                                   be void.

5. OFFICES:
   (a)  The Office of CIBC for the Transaction is 161 Bay Street, 5th Floor,
        Toronto, Canada M5J 2S8.

   (b)  The Office of Counterparty for the Transaction is PLEASE ADVISE.

6. BROKER/ARRANGER:      None

7. This Confirmation may be executed in one or more counterparts, either in
   original or facsimile form, each of which shall constitute an original and
   all of which together shall constitute one and the same agreement. When
   executed by the parties through facsimile transmission, this Confirmation
   shall constitute the original agreement between the parties and the parties
   hereby adopt the signatures printed by the receiving facsimile machine as the
   original signatures of the parties.



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Entering into a derivative transaction involves certain risks. An identification
of the principal risks is provided in the CIBC Oppenheimer Financial Products
Risk Disclosure Statement, which has been delivered to you. If you have not
received a copy, please let us know and one will be provided to you. You should
always consider those risks in determining whether to enter into derivatives
transactions.

Except as if expressly agreed to by you or us in writing, neither of us has
acted as advisor to the other with respect to the desirability or
appropriateness of entering into the Transaction confirmed hereby or with
respect to the other party's risk management needs generally. This pertains not
only to the financial and market risk management risks and consequences of the
confirmed or any proposed Transaction, but also to any legal, regulatory, tax,
accounting and credit issues generated by such transactions, which each party
must evaluate for itself and in reliance on its own professional advisors. THE
TRANSACTION CONFIRMED HEREBY MIGHT BE ONE WHICH INCLUDES ONE OR MORE ELEMENTS
NOT FOUND IN MORE BASIC SWAP STRUCTURES WITH WHICH YOU SHOULD BE FAMILIAR, SUCH
AS SINGLE CURRENCY INTEREST RATE SWAPS. THESE ELEMENTS, IF PRESENT, COULD
INCLUDE LEVERAGE, ONE OR MORE EMBEDDED OPTIONS OR ONE OR MORE EMBEDDED FORWARDS
OR SOME OTHER STRUCTURAL ELEMENTS WHICH COULD SIGNIFICANTLY AFFECT THE
TRANSACTIONS' PRICE BEHAVIOR. AS WITH ANY OTHER FINANCIAL MARKET TRANSACTION,
YOU SHOULD MONITOR THE TRANSACTION'S VALUE FREQUENTLY THROUGHOUT ITS TERM TO
PROTECT YOURSELF AS WELL AS POSSIBLE AGAINST UNANTICIPATED OR UNDESIRED CHANGES
IN ITS VALUE AND TO INSURE ITS CONTINUED UTILITY RELATIVE TO YOUR FINANCIAL
MANAGEMENT NEEDS AND YOUR APPETITE FOR THE MARKET, LEGAL, REGULATORY, CREDIT,
TAX AND ACCOUNTING RISKS THAT CAN ATTEND THE TRANSACTION.
--------------------------------------------------------------------------------

                                       6
<PAGE>

Please confirm the foregoing correctly sets forth the terms of our agreement by
executing the copy of this Confirmation enclosed for that purpose and returning
it to us or by sending to us a letter or telex substantially similar to this
letter, which letter or telex sets forth the material terms of the Transaction
to which this Confirmation relates and indicates your agreement to those terms.


                                        Yours Sincerely,

                                        CANADIAN IMPERIAL BANK OF COMMERCE


                                        By: /s/ Gina S. Ghent
                                           ---------------------------------
                                        Name: Gina S. Ghent
                                        Title:Executive Director


Confirmed as of the date first written:

PETRIE STORES LIQUIDATING TRUST


By: /s/ Stephanie R. Joseph
   ------------------------------
Name: Stephanie R. Joseph
Title:Manager and Chief Executive Officer


                                       7
<PAGE>

                                            Canadian Imperial Bank of Commerce
                                            425 Lexington Ave. - 5th Floor
                                            New York, New York 10017



                                            January 28, 1998



Attn:  Petrie Stores Liquidating Trust
Re:    Canadian Imperial Bank of Commerce Transaction #:  NY EQT 0522
       Trade Date:  November 26, 1997


Dear Ms. Joseph:

Reference is made to the above transaction (see confirmation to follow for
details).  Canadian Imperial Bank of Commerce, New York Agency has acted as
agent under Securities and Exchange Commission Rule 15a-6 in confirming this
transaction.

If you have any questions, please call us at (212) 885-4413.


                                            Sincerely,


                                             /s/ Gina S. Ghent
                                            -------------------------------
                                            Name: Gina S. Ghent
                                            Title:Executive Director


                                       8