Document:

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                                                                     Exhibit 4.2

                          REGISTRATION RIGHTS AGREEMENT

            REGISTRATION RIGHTS AGREEMENT (this "Registration Rights
Agreement"), dated as of July 8, 1991 among THE HORN & HARDART COMPANY, a Nevada
corporation ("H&H"), NORTH AMERICAN RESOURCES LIMITED, a British Virgin Islands
Corporation ("NAR"), and Intercontinental Mining & Resources Limited, a Delaware
corporation and indirect wholly-owned subsidiary of NAR ("IMR").

                                R E C I T A L S :

            A. H&H, The Hanover Companies, a Nevada corporation and a
wholly-owned subsidiary of H&H ("Hanover"), and NAR are parties to a Stock
Purchase Agreement, dated as of July 8, 1991 (as modified, amended and
supplemented and in effect from time to time, the "Stock Purchase Agreement"),
providing, inter alia, subject to the terms and conditions thereof, (i) for the
issuance and sale by Hanover to NAR of 40,000 shares of its 8% Cumulative
Preferred Stock, par value $.0l per share (the "Hanover Preferred Shares") and
(ii) the issuance and sale by H&H to NAR of 13,333,334 shares of its Class B
Common Stock, par value $.0l per share (the "Company Class B Common Stock").

            B. H&H is the registered and beneficial owner of all the issued and
outstanding shares of common stock, par value $1.00 per share, of Hanover (the
"Hanover Common Stock").

            C. H&H and NAR are expected to be parties to an Exchange and Option
Agreement to be dated as of the closing date under the Stock Purchase Agreement
(the "Exchange and Option Agreement"), providing, subject to the terms and
conditions thereof, for NAR's option to purchase 13,333,334 shares (as adjusted
in accordance therewith) of Common Stock, par value $.66 2/3 per share, of H&H
(the "Common Stock") by exchanging the Hanover Preferred Shares and Company
Class B Common Stock owned by it.

            D. IMR and several direct or indirect wholly-owned subsidiaries of
H&H are parties to a $30,000,000 secured Revolving Credit and Letter of Credit
Facility of even date herewith (the "Working Capital Facility").

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            E. It is a condition precedent to the execution and delivery of the
Working Capital Facility and to the issue and sale of the Hanover Preferred
Shares and the Company Class B Common Stock and the transactions contemplated by
the Stock Purchase Agreement and the closing thereunder that this Registration
Rights Agreement be executed and delivered by H&H, IMR and NAR.

            F. Each of H&H, IMR and NAR desire to enter into this Registration
Rights Agreement to satisfy the conditions described in the preceding paragraphs
and for the further purposes herein set forth.

                               A G R E E M E N T :

            The parties agree as follows:

            Section 1. Defined Terms; Effectiveness of Registration Rights.

            1.1 Defined Terms. Capitalized terms used and not defined herein and
defined in the Stock Purchase Agreement shall have the meanings therein
indicated. In addition to such terms defined therein and such terms as are
otherwise defined herein, the following terms shall have the following meanings;

            "Inspectors" has the meaning attributed thereto in Section 5.

            "Option" has the meaning attributed thereto in the Exchange and
Option Agreement.

            "Other Securities" has the meaning attributed thereto in 3.1.

            "Records" has the meaning attributed thereto in Section 5.

            "Registrable Securities" means (i) shares of Common Stock of H&H
issued to NAR pursuant to the terms of the Exchange and Option Agreement, (ii)
shares of Common Stock of H&H acquired upon the exercise of warrants or other
securities issued to NAR or its wholly-owned subsidiary in accordance with
Section 4.17 of the Stock Purchase Agreement, (iii) shares of Common Stock of
H&H acquired upon the exercise of warrants issued and granted to IMR or other
direct or indirect wholly-owned subsidiaries of NAR in connection with the
Working Capital Facility, (iv) warrants or other securities issued to NAR, IMR
or any direct or indirect wholly-owned subsidiaries of NAR pursuant to the
Working Capital Facility or pursuant to section 4.17 of the

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Stock Purchase Agreement, and (v) any securities of H&H distributed with respect
to shares of its Common Stock.

            "Registration Expenses" means all expenses incident to H&H's
performance of or compliance with the registration and other requirements set
forth in this Registration Rights Agreement including, without limitation, the
following: (i) the fees, disbursements and expenses of all, counsel to H&H and
all accountants in connection with the registration statement, any preliminary
prospectus or final prospectus, any other offering documents and amendments and
supplements thereto and the mailing and delivery of copies thereof to
underwriters and dealers; (ii) all expenses in connection with the preparation,
printing and filing of the registration statement, any preliminary prospectus or
final prospectus, any other offering document and amendments and supplements
thereto and the mailing and delivery of copies thereof to underwriters and
dealers; (iii) the cost of printing or producing any agreement(s) among
underwriters, underwriting agreement(s) and blue sky or legal investment
memoranda, any selling agreements and any other documents in connection with the
offering, sale or delivery of the Registrable Securities to be disposed of; (iv)
all expenses in connection with the qualification of the Registrable Securities
to be disposed of for offering and sale under state securities laws, including
the fees and disbursements of counsel for the underwriters in connection with
such qualification and in connection with any blue sky and legal investment
surveys; (v) the filing fees incident to securing any required review by the
National Association of Securities Dealers, Inc. of the terms of the sale of the
Registrable Securities to be disposed of; (vi) the cost and charges of any
transfer agent or registrar in connection with the registration of exchange or
transfer of the Registrable Securities to be disposed of; and (vii) all stock
exchange listing fees.

            "Total Number of Includible Securities" has the meaning attributed
thereto in Section 3.1(b).

            1.2 Effectiveness of Registration Rights. The registration rights
pursuant to Sections 2 and 3 hereof shall become effective on the date hereof
and continue so long as IMR shall hold warrants to purchase H&H Common Shares or
Common Shares and so long as NAR has the right to receive Registrable Securities
pursuant to the Exchange and Option Agreement and after NAR has exercised the
Option, so long as Registrable Securities are held by NAR, IMR or its
wholly-owned subsidiaries or a permitted assign.

            1.3 Registration Not Required. H&H shall not be obligated to effect
any registration pursuant to Section 2.1 or Section 3.1 hereof if, in the
written opinion of counsel

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to H&H who shall be reasonably satisfactory to NAR and which opinion shall be
concurred in by counsel to NAR, the intended method or methods of disposition of
any Registrable Securities by NAR or IMR may be effected without registration
under the Securities Act and without restriction as to subsequent trading.

            Section 2. Registration on Request.

            2.1 Notice. Upon written notice from either NAR or IMR or upon a
joint written request from NAR and IMR requesting that H&H effect the
registration under the Securities Act of all or a portion of the Registrable
Securities beneficially owned by it, which notice shall specify the intended
method or methods of disposition of such Registrable Securities, H&H shall use
its best efforts to effect as promptly as practicable and without restriction as
to subsequent trading the registration, under the Securities Act, of such
Registrable Securities for disposition in accordance with the intended method or
methods of disposition stated in such request, provided that:

            (a) if, in the reasonable judgment of H&H, a registration at the
      time and on the terms requested would adversely affect any public
      financing by H&H that had been firmly planned by H&H prior to the notice
      by NAR and/or IMR, as the case may be, requesting registration, H&H shall
      not be required to commence using its best efforts to effect a
      registration pursuant to this Section 2 until 180 days after completion of
      such financing or 90 days after the abandonment of such financing;

            (b) H&H shall not be required to file a registration statement if,
      as a result, H&H would be required to include in such registration
      statement (i) audited financial statements as of any date other than a
      fiscal year end or any other date as of which H&H shall have audited
      financial statements or (ii) pro forma financial statements pursuant to
      Regulation S-X under the Securities Act if such pro forma statements
      cannot be reasonably prepared in a timely fashion, until such audited
      financial statements or such pro forma financial statements have been
      prepared; provided that H&H shall use its reasonable efforts to prepare on
      a timely basis any audited financial statements or pro forma financial
      statements required to be included;

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            (c) if H&H determines in the good faith judgment of H&H's general
      counsel that the filing of a registration statement would require the
      disclosure of material information which H&H has a good faith business
      purpose for preserving as confidential or H&H is unable to comply with
      Commission requirements, H&H shall not be required to commence using its
      best efforts to effect a registration pursuant to this Section 2 until the
      earlier of (i) the date upon which such material information is disclosed
      to the public (it being understood that nothing herein shall require such
      disclosure) or ceases to be material or (ii) 60 days after H&H makes such
      good faith determination;

            (d) H&H shall not, without the consent of NAR or IMR, include any
      securities for sale for its own account or the account of others in any
      registration statement filed pursuant to section 2; and

            (e) NAR and IMR shall together have the right to exercise
      registration rights pursuant to this Section 2.1 one time.

If in any case H&H shall under any of foregoing clauses (a) through (e) postpone
the filing of a registration statement requested by NAR or IMR, NAR or IMR, as
the case may be, shall have the right for 30 days after receipt of the notice of
postponement to withdraw the request for registration by giving written notice
to H&H, and in the event of such withdrawal such request shall not be counted
under the foregoing clause (e) to this Section 2.1. In addition, in no event
shall a registration request be counted if all the Registrable Securities with
respect to which a request is made are not registered pursuant to an effective
registration statement.

            2.2 Registration Expenses. H&H shall pay or cause to be paid all
Registration Expenses in connection with the exercises of registration rights
pursuant to this Section 2; provided that with respect to any such registration
NAR or IMR, as the case may be, shall bear any transfer taxes applicable to its
Registrable Securities registered thereunder, all commissions, discounts or
other compensation payable to any underwriters (including fees and expenses of
underwriters' counsel other than those referred to in clause (iv) of the
definition of Registration Expenses) in respect of such Registrable Securities
and the fees and expenses of its own counsel; and provided further that in no
event shall NAR or IMR, as the case may be, be required to pay any internal
costs of H&H.

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            Section 3. Incidental Registration.

            3.1 Notice and Registration. If H&H proposes to register any of its
voting securities ("Other Securities") for public sale under the Securities Act,
on a form and in a manner which would permit registration of Registrable
Securities for sale to the public under the Securities Act, it will give prompt
written notice to NAR and IMR of its intention to do so, and upon the written
request of NAR or IMR or upon the joint written request of NAR and IMR, as the
case may be, delivered to H&H within 10 business days after the giving of any
such notice (which request shall specify the Registrable Securities intended to
be disposed of by NAR, IMR or both, as the case may be, and the intended method
of disposition thereof) H&H will use its best efforts to effect, in connection
with the registration of the Other Securities, the registration under the
Securities Act of all Registrable Securities which H&H has been so requested to
register by NAR and/or IMR, as the case may be, to the extent required to permit
the disposition (in accordance with the intended method or methods thereof as
aforesaid) of the Registrable Securities so to be registered, provided that:

            (a) if, at any time after giving such written notice of its
      intention to register any Other Securities and prior to the effective date
      of the registration statement filed in connection with such registration,
      H&H shall determine for any reason not to register the Other Securities,
      H&H may, at its election, give written notice of such determination to NAR
      and/or IMR, as appropriate, and thereupon H&H shall be relieved of its
      obligations to register such Registrable Securities in connection with the
      registration of such Other Securities (but not from its obligation to pay
      Registration Expenses to the extent incurred in connection therewith as
      provided in Section 3.2), without prejudice, however, to the rights, if
      any, of NAR and/or IMR immediately to request that such registration be
      effected as a registration under Section 2;

            (b) H&H will not be required to effect any registration of
      Registrable Securities under this Section 3 if, and to the extent that,
      the underwriters (or any managing underwriter) shall advise H&H in writing
      that, in their reasonable opinion, inclusion of such number of shares of
      Registrable Securities will adversely affect the price or distribution of
      the securities to be offered solely for the account of H&H. Such

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      advice shall include a statement as to the underwriters' (or any managing
      underwriter's) opinion as to the number of shares which may be included
      without adversely affecting the price or distribution of the securities
      solely for the account of H&H (such total number of shares which such
      advice states may be so included being the "Total Number of Includible
      Securities"). H&H shall promptly furnish NAR and/or IMR, as appropriate,
      with a copy of such written advice. In the event that the number of shares
      requested to be included by NAR and/or IMR together with the number of
      other shares requested to be included by any selling security holders
      requesting inclusion of such security holders' securities pursuant to
      registration rights granted by H&H exceeds the Total Number of Includible
      Securities, the aggregate number of shares of Registrable Securities held
      by NAR and/or IMR entitled to be included in the public sale shall be the
      product of (A) a fraction, the numerator of which is the total number of
      such shares of Registrable Securities held by NAR and/or IMR requested to
      be included in such public sale and the denominator of which is the total
      number of NAR's and/or IMR's shares of Registrable Securities requested
      to be included in such public sale plus the number of other shares
      requested to be included by other securityholders pursuant to registration
      rights granted by H&H and (B) the Total Number of Includible Securities.

            (c) H&H shall not be required to effect any registration of
      Registrable Securities under this section 3 incidental to the registration
      of any at its securities in connection with mergers, acquisitions,
      exchange offers, dividend reinvestment plans or stock option or other
      employee benefit plans.

No registration of Registrable Securities effected under this Section 3 shall
relieve H&H of its obligation, if any, to affect the registration of Registrable
Securities pursuant to section 2.

            3.2 Registration Expenses. H&H will pay all Registration Expenses in
connection with any registration pursuant to this Section 3; provided that with
respect to any such registration NAR and/or IMR, as the case may be, shall bear
all transfer taxes applicable to its Registrable Securities registered
thereunder, its pro rata share of all commissions, discounts or other
compensation payable to any underwriters (including fees and expenses of
underwriters'

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counsel other than those referred to in clause (iv) of the definition of
Registration Expenses) in respect of such Registrable Securities and the fees
and expenses of its own counsel, the fees associated with the filing under state
securities laws of the Registrable Securities in states and in amounts in
respect of which H&H would not otherwise have made such filings and any
Commission filing fees related solely to the Registrable Securities NAR or IMR,
as the case may be, has requested be registered; and provided, further, that in
no event shall NAR or IMR be required to pay any internal costs of H&H.

            Section 4. Registration Procedures.

            4.1 Registration and Qualification.

            (a) If and whenever H&H is required to use its best efforts to
effect the registration of any Registrable Securities under the Securities Act
as provided in Sections 2 and 3, H&H will as promptly as is practicable:

            (i) prepare, file and use its best efforts to cause to become
      effective a registration statement under the Securities Act regarding the
      Registrable Securities to be offered;

            (ii) prepare and file with the Commission such amendments and
      supplements to such registration statement and the prospectus used in
      connection therewith as may be necessary to keep such registration
      statement effective and to comply with the provisions of the Securities
      Act with respect to the disposition of all Registrable Securities until
      the earlier of such time as all of such Registrable Securities have been
      disposed of in accordance with the intended methods of disposition by NAR
      or IMR, as set forth in such registration statement or the expiration of
      six months after such registration statement becomes effective;

            (iii) furnish to NAR and IMR and to any underwriter of such
      Reqistrable Securities such number of conformed copies of such
      registration statement and of each such amendment and supplement thereto
      (in the case of NAR and IMR or any managing underwriter, including all
      exhibits), such number of copies of the prospectus included in such
      registration statement (including each preliminary prospectus and any
      summary prospectus) or filed under the Securities Act, in conformity with
      the requirements of the Securities Act, such documents as may be
      incorporated by reference in

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      such registration statement or prospectus, and such other documents, as
      NAR, IMR or such underwriter may reasonably request;

            (iv) use its best efforts to register or qualify all Registrable
      Securities covered by such registration statement under such other
      securities or blue sky laws of such jurisdictions as NAR, IMR or any
      underwriter of such Registrable Securities shall reasonably request, and
      do any and all other acts and things which may be necessary or advisable
      to enable NAR, IMR or any underwriter to consummate the disposition in
      such jurisdictions of its Registrable Securities covered by such
      registration statement, except that H&H shall not for any such purpose be
      required to qualify generally to do business as a foreign corporation in
      any jurisdiction wherein it is not so qualified, or to subject itself to
      taxation in any such jurisdiction, or to consent to general service of
      process in any such jurisdiction;

            (v) in the case of any underwritten offering, furnish to NAR and
      IMR, as appropriate, and the underwriters, addressed to them, (A) an
      opinion of counsel for H&H, dated the date of the closing under the
      underwriting agreement relating to any underwritten offering, and (B) a
      comfort letter signed by the independent public accountants who have
      certified H&H's financial statements included in such registration
      statement, covering substantially the same matters with respect to such
      registration statement (and the prospectus included therein) and, in the
      case of such accountants' letter, with respect to events subsequent to the
      date of such financial statements, as are customarily covered in opinions
      of issuer's counsel and in accountants' letters, respectively, delivered
      to underwriters in underwritten public offerings of securities and such
      other matters as NAR or IMR may reasonably request;

            (vi) immediately notify NAR and IMR at any time when a prospectus
      relating to a registration pursuant to Section 2 or 3 is or was required
      to be delivered under the Securities Act, of the happening of any event as
      a result of which the prospectus included in such registration statement,
      as then in effect, includes or included an untrue statement of a material
      fact or omits or omitted to state any material fact required to be stated
      therein or necessary, in the light of the

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      circumstances then existing, to make the statements therein not
      misleading, and at the request of NAR or IMR prepare and furnish to NAR or
      IMR a reasonable number of copies of a supplement to or an amendment of
      such prospectus as may be necessary so that, as thereafter delivered to
      the purchasers of such Registrable Securities, such prospectus shall not
      include an untrue statement of a material fact or omit to state a material
      fact required to be stated therein or necessary, in light of the
      circumstances then existing, to make the statements therein not
      misleading; and

            (vii) use reasonable efforts to do any and all other acts NAR or IMR
      may reasonably request and which are customary for a registration of
      equity securities.

H&H may require NAR or IMR to furnish such information regarding NAR or IMR and
the distribution of such securities as H&H may from time to time reasonably
request in writing and as shall be required by law or by the Commission in
connection with any registration.

            (b) Each of NAR and IMR agree that, upon receipt of any notice from
H&H of the happening of any event of the kind described in Section 4.1(a) (vi)
hereof, NAR or IMR, as the case may be, shall use its best efforts to
discontinue forthwith disposition of Registrable Securities pursuant to the
registration statement covering such Registrable Securities until NAR's or IMR's
receipt of the copies of the supplemented or amended prospectus contemplated by
Section 4.1(a) (vi) hereof.

            4.2 Listing of Common Stock. Upon the request of NAR or IMR in
connection with any public offering of the Common Stock, H&H shall use its best
efforts to effect, as promptly as is practicable, the listing of the Common
Stock on the Amex and all other national securities exchanges on which H&H's
Common Stock shall then be listed.

            4.3 Underwriting.

            (a) If requested by the managing underwriter for any underwritten
offering of Registrable Securities pursuant to a registration requested
hereunder, H&H will enter into an underwriting agreement with the underwriters
for such offering, such agreement to contain such representations and warranties
by H&H and such other terms and provisions as are customarily contained in
underwriting agreements with respect to secondary distributions, including,
without limitation, indemnities and contribution to the effect pro-

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vided in Section 6 hereof and the provision of opinions of counsel and
accountants letters to the effect provided in Section 4.1(a) (v) hereof. NAR
and/or IMR, as appropriate, shall be a party to any such under-writing agreement
and the representations and warranties by, and the other agreements on the part
of, H&H to and for the benefit of such underwriters, shall also be made to and
for the benefit of NAR and/or IMR.

            (b) In the event that any registration pursuant to Section 3 shall
involve, in whole or in part, an underwritten offering, H&H may require the
Registrable Securities requested to be registered pursuant to Section 3 by NAR
or IMR to be included in such underwriting on the same terms and conditions as
shall be applicable to the Other Securities being sold through underwriters
under such registration. In any such case, NAR and/or IMR shall be party to any
such underwriting agreement. Such agreement shall contain such representations,
warranties and covenants by NAR or IMR, as appropriate, and such other terms and
provisions as are customarily contained in underwriting agreements with respect
to secondary distributions, including, without limitation, indemnities and
contribution to the effect provided in Section 6 hereof. The representations and
warranties in such underwriting agreement by, and the other agreements on the
part of, H&H to and for the benefit of such underwriters, shall also be made to
and for the benefit of NAR and IMR, as appropriate.

            Section 5. Preparation; Reasonable Investigation. In connection with
the preparation and filing of each registration statement registering
Registrable Securities under the Securities Act, H&H will give NAR, IMR and the
underwriters, if any, and their respective counsel and accountants
(collectively, the "Inspectors"), such reasonable and customary access to its
books and records (collectively, the "Records") and such opportunities to
discuss the business of H&H with its officers and the independent public
accountants who have certified its financial statements as shall be necessary,
in the opinion of NAR, IMR and such underwriters or their respective counsel, to
conduct a reasonable investigation within the meaning of the Securities Act.
Records which H&H reasonably determines to be confidential and which it notifies
the Inspectors in writing are confidential shall not be disclosed by the
Inspectors unless (i) the disclosure of such Records is necessary or appropriate
to avoid or correct a misstatement or omission in the registration statement,
(ii) the portion of the Records to be disclosed has otherwise become publicly
known, (iii) the information in such Records is to be used in connection with
any litigation or governmental investigation or hearing relating to any
registration statement or (iv) the release of such Records

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is ordered pursuant to a subpoena or other order. NAR and IMR each agree that it
will, upon learning that disclosure of such Records is sought in a court of
competent jurisdiction, give notice to H&H.

            Section 6. Indemnification and Contribution.

            (a) Indemnification by H&H. H&H agrees to indemnify and hold
harmless each Person who participates as an underwriter, NAR, IMR, each of their
respective officers and directors and each Person, if any, who controls any such
underwriter, NAR or IMR within the meaning of Section 15 of the Securities Act
as follows:

            (i) against any and all loss, claim, damage and expense whatsoever,
      as incurred, arising out of or caused by any untrue statement or alleged
      untrue statement of a material fact contained in any registration
      statement (or any amendment thereto) pursuant to which Registrable
      Securities were registered under the Securities Act, including all
      documents incorporated therein by reference, or the omission or alleged
      omission therefrom of a material tact required to be stated therein or
      necessary to make the statements therein not misleading or arising out of
      any untrue statement or alleged untrue statement of a material fact
      contained in any prospectus (or any amendment or supplement thereto) or
      the omission or alleged omission therefrom of a material fact necessary in
      order to make the statements therein, in the light of the circumstances
      under which they were made, not misleading;

            (ii) against any and all loss, liability, claim, damage and expense
      whatsoever, as incurred, to the extent of the aggregate amount paid in
      settlement of any litigation, or investigation or proceeding by any
      Governmental Body, commenced or threatened, or of any claim whatsoever
      based upon any such untrue statement or omission, or any such alleged
      untrue statement or omission, if such settlement is effected with the
      written consent of H&H ; and

            (iii) against any and all expense whatsoever, as incurred (including
      fees and disbursements of counsel chosen by NAR or any underwriter),
      reasonably incurred in investigating, preparing or defending against any
      litigation, or investigation or proceeding by any Governmental Body,
      commenced or threatened, or any claim whatsoever based upon any such
      untrue statement or

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      omission, or any such alleged untrue statement or omission, to the extent
      that any such expense is not paid under clause (i) or (ii) above;

provided, however, that this indemnity agreement does not apply to any loss,
liability, claim, damage or expense to the extent arising out of or caused by
any untrue statement or omission or alleged untrue statement or omission made in
reliance upon and in conformity with written information furnished to H&H by NAR
and/or IMR, as the case may be, or any underwriter expressly for use in a
registration statement (or any amendment thereto) or any prospectus (or any
amendment or supplement thereto); and further provided that this indemnity
agreement does not apply to any loss, liability, claim, damage or expense
arising out of or caused by NAR's or IMR's continued circulation, subsequent to
NAR's or IMR's, as the case nay be, receipt of the notice described in Section
4.1(a) (vi) hereof, of a prospectus including the untrue statement of a material
fact or omission of a material fact as to which such notice was provided.

            (b) Indemnification by NAR or IMR. NAR and IMR agree to indemnify
and hold harmless H&H and any underwriter, and each of their respective
directors and officers (including each officer of H&H who signed the
registration statement), and each Person, if any, who controls H&H or any
underwriter within the meaning of Section 15 of the Securities Act, against any
and all loss, liability, claim, damage and expense described in the indemnity
contained in Section 6(a) hereof, as incurred, with respect to untrue statements
or omissions, or alleged untrue statements or omissions, made in the
registration statement (or any amendment thereto) or any prospectus (or any
amendment or supplement thereto) in reliance upon and in conformity with written
information furnished to H&H by NAR or IMR expressly for use in the
registration statement (or any amendment thereto) or such prospectus (or any
amendment or supplement thereto).

            (c) Indemnification by Underwriter. Anything in section 6(a) to the
contrary notwithstanding, H&H's obligation to indemnify any underwriter pursuant
to Section 6(a) in an underwritten offering (or any Person controlling such
underwriter within the meaning of Section 15 of the Securities Act) shall be
conditioned upon the underwriting agreement with such underwriter containing an
agreement by such underwriter to indemnify and hold harmless H&H, NAR and IMR,
and each of their respective directors and officers (including each officer of
H&H who signed the registration statement) and each Person, if any, who controls
H&H, NAR and IMR, within the meaning of Section 15 of the securities Act,
against any and all loss, liability claim, damage and

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expense described in the indemnity contained in Section 6(a) hereof, as
incurred, with respect to untrue statements or omissions, or alleged untrue
statements or omissions, made in the registration statement (or any amendment
thereto) or any prospectus (or any amendment or supplement thereto) in reliance
upon and in conformity with written information furnished to H&H by such
underwriter expressly for use in the registration statement (or any amendment
thereto) or such prospectus (or any amendment or supplement thereto).

            (d) Conduct of Indemnification Proceedings. Each indemnified party
shall give prompt notice to each indemnifying party of any action commenced
against it in respect of which indemnity may be sought hereunder, but failure so
to notify an indemnifying party shall not relieve it from any liability which it
may have otherwise than on account of this indemnity agreement. An indemnifying
party may, at its own expense, participate in and direct the defense of such
action. In no event shall the indemnifying parties be liable for the fees and
expenses of more than one counsel for all indemnified parties in connection with
any one action or separate but similar or related actions in the same
jurisdiction arising out of the same general allegations or circumstances.

            (e) Contribution. In order to provide for just and equitable
contribution in circumstances in which the indemnity agreement provided for in
this Section 6 is for any reason held to be unenforceable although applicable in
accordance with its terms, H&H NAR, IMR and any underwriter shall contribute to
the aggregate losses, liabilities, claims, damages and expenses of the nature
contemplated by such indemnity agreement incurred by H&H, NAR, IMR and any
underwriter, in such proportions that the underwriters are responsible for that
portion represented by the percentage that the underwriting discount appearing
on the cover page of the prospectus bears to the public offering price appearing
thereon and H&H, NAR and IMR, as the case may be, are responsible for the
balance; provided, however, that no Person guilty of fraudulent
misrepresentation (within the meaning of Section 11(f) of the securities Act)
shall be entitled to contribution from any Person who was not guilty of such
fraudulent misrepresentation. As between H&H on the one hand and NAR and/or IMR
on the other hand, such parties shall contribute to the aggregate losses,
liabilities claims, damages and expenses of the nature contemplated by such
indemnity agreement in such proportion as shall be appropriate to reflect (i)
the relative benefits received by H&H, on the one hand, and NAR and/or IMR on
the other hand, from the offering of the Registrable Securities and any other
securities included in such offering, and (ii) the relative fault of H&H, on the
one hand, and NAR and/or IMR on the other, with respect to the statements or
omissions

                                     - 14 -
<PAGE>   15

which resulted in such loss, liability, claim, damage or expense, or action in
respect thereof, as well as any other relevant equitable considerations. The
relative benefits received by H&H, on the one hand, and NAR and/or IMP on the
other, with respect to such offering shall be deemed to be in the same
proportion as the sum of the total purchase price paid to H&H by NAR and/or IMP,
as the case may be, in respect of the Registrable Securities plus the total net
proceeds from the offering of any securities included in such offering (before
deducting expenses) received by H&H bears to the amount by which the total net
proceeds from the offering of Registrable Securities (before deducting expenses)
received by NAR and/or IMR, as the case may be, with respect to such offering
exceeds the purchase price paid to H&H in respect of the Registrable Securities,
and in each case the net proceeds received from such offering shall be
determined as set forth on the table to the cover page of the prospectus. The
relative fault shall be determined by reference to, among other things, whether
the untrue or alleged untrue statement of a material fact or omission or alleged
omission to state a material fact relates to information supplied by H&H, NAR or
IMR, the intent of the parties and their relative knowledge, access to
information and opportunity to correct or prevent such statement or omission.
H&H, NAR and IMR agree that it would not be just and equitable if contribution
pursuant to this Section 6 were to be determined by pro rata allocation or by
any other method of allocation which does not take into account the equitable
considerations referred to herein. For purposes of this Section 6, each Person,
if any, who controls NAR or IMR or an underwriter within the meaning of Section
15 of the Securities Act shall have the same rights to contribution as NAR, IMR
or such underwriter, and each director of H&H, each officer of H&H who signed
the registration statement, and each Person, if any, who controls H&H within the
meaning of Section 15 of the securities Act shall have the same rights to
contribution as H&H.

            Section 7. Permitted Assignment. NAR or IMR may assign rights
hereunder in connection with any sale of Registrable Securities provided that
such assignee shall have agreed in writing, satisfactory in form and substance
to H&H and its counsel, to be bound hereby. Rights hereunder assigned by NAR or
IMR to any other Person shall not be further assignable by such other Person
other than to a successor to all or substantially all of such other Person's
business which successor shall have agreed in writing to be bound hereby. From
and after any such assignment pursuant to this Section 7, reference herein to
NAR or IMR, as the case may be, shall include such permitted assignee or
assignees and nothing contained in this Section

                                     - 15 -
<PAGE>   16

shall increase the number of registrations required to be made by H&H hereunder.

            Section 5. Miscellaneous.

            8.1 Severability. If any term, provision, covenant, restriction,
part or portion of this Registration Rights Agreement is held by a court of
competent jurisdiction to be invalid, void or unenforceable, or is otherwise
legally impossible to perform, the remainder of the terms, provisions,
covenants, restrictions, parts and portions of this Registration Rights
Agreement shall remain in full force and effect.

            8.2 Specific Enforcement. H&H, NAR and IMR acknowledge and agree
that irreparable damage would occur in the event that any of the provisions of
this Registration Rights Agreement were not performed in accordance with their
specific terms or were otherwise breached. It is accordingly agreed that the
parties shall be entitled to an injunction or injunctions to prevent or cure
breaches of the provisions of this Registration Rights Agreement, this being in
addition to any other remedy to which they may be entitled by law or equity.

            8.3 Entire Agreement. This Registration Rights Agreement contains
the entire understanding of the parties with respect to the matters covered
hereby and this Registration Rights Agreement may be amended only by an
agreement in writing executed by the parties hereto.

            8.4 Counterparts. This Registration Rights Agreement may be executed
by the parties hereto in counterparts each of which shall be deemed an original,
but all of which together shall constitute one and the same instrument.

            8.5 Notices. Any notice pursuant to this Registration Rights
Agreement to be given by either party shall be sufficiently given for purposes
of this Registration Rights Agreement if sent by first-class mail, postage
prepaid, delivered by hand or overnight courier or sent by facsimile, addressed
as follows:

      (i) if to the Company, addressed to:

          The Horn & Hardart Company
          1500 Harbor Boulevard
          Weehawken, New Jersey 07087
          Attn:   Exec. V.P. - Corporate Affairs
                  General Counsel, and Secretary
          Facsimile number: 201-392-5005

                                     - 16 -
<PAGE>   17

      with a copy to:

           Martin Nussbaum, Esq
           Shereff, Friedman, Hoffman & Goodman
           919 Third Avenue
           New York, New York 10022-9998
           Facsimile Number: 212-758-9526

      (ii) if to the Buyer, addressed to:

           North American Resources Limited
           c/o Quadrant Management Company
           689 Fifth Avenue
           New York, New York 10022
           Attn: Mr. Alan G. Quasha
           Facsimile Number: 212-753-4974

      with a copy to:

           Monte E. Wetzler, Esq.
           Breed, Abbott & Morgan
           153 East 53rd Street
           New York, New York 10022
           Facsimile Number: 212-688-0258

      (iii) if to IMP, addressed to:

           Intercontinental Mining & Resources Limited
           c/o Quadrant Management Company
           689 Fifth Avenue
           New York, New York 10022
           Attn: Chief Financial Officer
           Facsimile Number: 212-753-4974

      with a copy to:

           Monte E. Wetzler, Esq.
           Breed, Abbott & Morgan
           153 East 53rd Street
           New York, New York 10022
           Facsimile Number: 212-888-0258

or at such other address as shall be furnished in writing to the other party.

            8.6 Waivers. Each party may waive in whole or in party any benefit
or right provided to it under this Registration Rights Agreement. No waiver by
any party of any default with respect to any provision, condition, requirement,
or of any benefit or right hereof shall be deemed to be a waiver of any other
provision, condition, requirement, benefit or right hereof; nor shall any delay
or omission of either party to exercise any right hereunder in

                                     - 17 -
<PAGE>   18

any manner impair the exercise of any such right accruing to it thereafter.

            8.7 Submission to Jurisdiction; Consent to Service of Process. Any
action with respect to any claim arising out of or relating to this Registration
Rights Agreement including any claim for specific performance arising under
section 8.2 hereof shall be brought in the State, City and County of New York,
and in furtherance thereof (a) each of H&H, NAR and IMR irrevocably consents and
submits to the exclusive jurisdiction of the Supreme Court of the State of New
York for the County of New York and the United States District Court for the
Southern District of New York and (b) each of H&H, NAR and IMR irrevocably
waives any objection which it may have at any time to the laying of venue of any
suit, action or proceeding arising out of or relating to this Registration
Rights Agreement brought in any such court, irrevocably waives any claim that
any such suit, action or proceeding brought in any such court has been brought
in an inconvenient forum and further irrevocably waives the right to object,
with respect to such suit, action or proceeding brought in any such court, that
such court does not have jurisdiction over such party. Each of H&H, NAR and IMR
consents that service of process upon it in any such suit, action or proceeding
may be made in the manner set forth in section 8.5 hereof.

            8.8 Headings. The headings herein are for convenience only, do not
constitute a part of this Registration Rights Agreement and shall not be deemed
to limit or affect any of the provisions hereof.

            8.9 Successors and Assigns. This Registration Rights Agreement shall
be binding upon and inure to the benefit of H&H, NAR, IMR, and their successors
and legal representatives. No other Person is intended to have any rights by
reason of, or to enforce, any provision of this Registration Rights Agreement.
Neither H&H, NAR nor IMR may assign this Registration Rights Agreement or any
rights hereunder except to the extent contemplated by Section 7 hereof.

            8.10 Governing Law. This Registration Rights Agreement shall be
governed by and construed and enforced in accordance with the laws of the State
of New York applicable to contracts made and to be performed entirely within
such state.

                                     - 18 -
<PAGE>   19

            IN WITNESS WHEREOF, H&H, NAR and IMR have caused this Registration
Rights Agreement to be duly executed by their respective authorized officers as
of the date set forth at the head of this Registration Rights Agreement.

                                         THE HORN & HARDART COMPANY

                                         By: /s/ Jack Rosentald
                                             -----------------------------------
                                             Name:  Jack Rosentald
                                             Title: President & CEO

                                         NORTH AMERICAN RESOURCES LIMITED

                                         By: /s/ Alan G. Quasing
                                             -----------------------------------
                                             Name:  Alan G. Quasing
                                             Title: Attorney-in-fact

                                         INTERCONTINENTAL MINING &
                                           RESOURCES, LIMITED

                                         By: /s/ Fred Anderson
                                             -----------------------------------
                                             Name: Fred Anderson
                                             Title: V.P.

                                     - 19 -<PAGE>   1
                                                                     Exhibit 4.5

================================================================================

                                WARRANT AGREEMENT

                                     BETWEEN

                           THE HORN & HARDART COMPANY

                                       AND

                   INTERCONTINENTAL MINING & RESOURCES LIMITED

                           --------------------------

                            Dated as of July 8, 1991

                              For 1,750,000 Shares
                                 of Common Stock

================================================================================
<PAGE>   2

            WARRANT AGREEMENT (the "Agreement") dated as of July 8, 1991,
between THE HORN & HARDART COMPANY, a Nevada corporation (the "Company"), and
INTERCONTINENTAL MINING & RESOURCES LIMITED, a Delaware corporation ("IMR").

            WHEREAS, IMR has agreed to extend credit to Hanover Direct, Inc., a
Pennsylvania corporation, Ring Response, Ltd., an Illinois corporation, and
Brawn of California, Inc., a California corporation, each a wholly-owned
indirect subsidiary of the Company, pursuant to the Credit Agreement, dated as
of July 8, 1991 (the "Credit Agreement"); and

      WHEREAS, as an inducement to IMR to enter into the Credit Agreement and
extend credit thereunder, the Company proposes to issue to IMR warrants as
hereinafter defined (the "Warrants") to purchase up to an aggregate of 1,750,000
shares (the "Warrant Shares") of the Company's Common Stock, par value $0.66
2/3% per share (the "Common Stock"), each Warrant entitling the holder thereof
to purchase one share of common Stock for an exercise price of $5.25, or such
other price as is established pursuant to the terms hereof;

            NOW, THEREFORE, in consideration of the premises and the mutual
agreements herein and for other good and valuable consideration, the receipt and
adequacy of which is hereby acknowledged, the parties hereto agree as follows:

            1. Issuance of Warrants; Form of Warrant Certificate. Concurrently
with the execution of this Agreement, the Company will issue and deliver the
Warrants to IMR. The number of Warrants to be issued and delivered shall be
equal to 1,750,000. The text of the Warrant Certificate (the "Warrant
Certificate") and the form of election to purchase Warrant Shares to be printed
on the reverse thereof shall be as set forth in Annex A attached hereto. The
Warrant Certificate shall be executed on behalf of the Company by the manual or
facsimile signature of the Chairman of the Board, President or Vice President of
the Company, under its corporate seal, affixed or in facsimile, attested to by
the manual or facsimile signature of the Secretary or an Assistant Secretary of
the Company.

            The Warrant Certificate and any later certificate issued upon
division, exchange, substitution or transfer thereof (collectively,
"Certificates"), bearing the manual or facsimile signatures of individuals who
were at any time the proper officers of the Company shall bind the Company,
notwithstanding that such individuals or any one of them shall have ceased to
hold such offices prior to the delivery of such Warrants or did not hold such
offices on the date of this Agreement.
<PAGE>   3

            Certificates shall be dated as of the date of execution thereof by
the Company either upon initial issuance or upon division, exchange,
substitution or transfer.

            2. Registration. The Warrants shall be numbered and shall be
registered in a Warrant Register as they are issued. The Company shall be
entitled to treat the registered holder of any Certificate on the Warrant
Register (the "Holder") as the owner in fact thereof for all purposes and shall
not be bound to recognize any equitable or other claim to or interest in such
Certificate on the part of any other person, and shall not be liable for any
registration or transfer of Warrants which are registered or to be registered in
the name of the fiduciary or the nominee of a fiduciary unless made with the
actual knowledge that a fiduciary or nominee is committing a breach of trust in
requesting such registration or transfer, or with knowledge of such facts that
its participation therein amounts to bad faith. The Warrants shall be registered
initially in the name of "Intercontinental Mining & Resources Limited."

            3. Exchange of Warrant Certificates. Subject to any restriction upon
transfer set forth in this Agreement, each Certificate may be exchanged for
another Certificate or Certificates entitling the Holder thereof to purchase a
like aggregate number of Warrant Shares as the Certificate or Certificates
surrendered then entitle such Holder to purchase. Any Holder desiring to
exchange a Warrant Certificate or Warrant Certificates shall make such request
in writing delivered to the Company, and shall surrender, properly endorsed, the
Warrant Certificate or Warrant Certificates to be so exchanged. Thereupon, the
Company shall execute and deliver to the person entitled thereto a new Warrant
Certificate or Warrant Certificates, as the case may be, as so requested. The
Company may require payment by a Holder requesting such exchange of a sum
sufficient to cover any tax or other governmental charge that may be imposed
therewith.

            4. Transfer of Warrants and Warrant Shares.

            (a) The Warrants will not be transferable except to affiliates of
IMR. The Warrants shall be transferable only on the books of the Company (the
"Warrant Register") upon delivery thereof, duly endorsed, by the Holder or by
his duly authorized attorney or representative, or accompanied by proper
evidence of succession, assignment or authority to transfer, in each case
accompanied by any necessary transfer tax or other governmental charge imposed
upon transfer, or evidence of the payment thereof. In all cases of transfer by
an attorney, the original power of attorney, duly approved, or an official copy
thereof, duly certified, shall

                                      -2-
<PAGE>   4

be deposited with the Company. In case of transfer by executors, administrators,
guardians or other legal representatives, duly authenticated evidence of their
authority shall be produced, and may be required to be deposited with the
Company in its discretion. Upon any registration of transfer, the Company shall
promptly deliver a new Certificate or Certificates to the persons entitled
thereto. Notwithstanding the foregoing, the Company shall have no obligation to
cause Warrants to be transferred on its books to any person, unless the holder
of such Warrants shall furnish to the Company evidence of compliance with the
Securities Act of 1933, as amended (the "Act"), in accordance with the
provisions of this Section.

            (b) IMR covenants to the Company that IMR will not dispose of any
Warrants or Warrant Shares except pursuant to (i) an effective Registration
Statement or (ii) an opinion of counsel, reasonably satisfactory to counsel for
the Company, that an exemption from such registration is available.

            (c) The Warrants shall be subject to a stop-transfer order and any
Certificates shall bear the following legend by which each Holder shall be
bound:

            "THE WARRANTS REPRESENTED BY THIS CERTIFICATE AND THE SHARES OF
      COMMON STOCK ISSUABLE UPON EXERCISE THEREOF MAY NOT BE OFFERED OR SOLD
      EXCEPT PURSUANT TO (i) AN EFFECTIVE REGISTRATION STATEMENT FILED PURSUANT
      TO THE SECURITIES ACT OF 1933, AS AMENDED, OR (ii) AN OPINION OF COUNSEL,
      WHICH OPINION SHALL BE REASONABLY SATISFACTORY TO COUNSEL FOR THIS
      CORPORATION, THAT AN EXEMPTION FROM REGISTRATION UNDER SUCH ACT IS
      AVAILABLE."

            (d) The Warrant Shares shall be subject to a stop-transfer order and
any certificates evidencing any such shares shall bear the following legends:

            "THE SHARES REPRESENTED BY THIS CERTIFICATE MAY NOT BE OFFERED OR
      SOLD EXCEPT PURSUANT TO (i) AN EFFECTIVE REGISTRATION STATEMENT FILED
      PURSUANT TO THE SECURITIES ACT OF 1933, AS AMENDED, OR (ii) AN OPINION OF
      COUNSEL, WHICH OPTION SHALL BE REASONABLY SATISFACTORY TO COUNSEL FOR THIS
      CORPORATION, THAT AN EXEMPTION FROM REGISTRATION UNDER SUCH ACT IS
      AVAILABLE."

            5. Term of Warrants; Exercise of Warrants.

            (a) Each Warrant entitles the Holder thereof to purchase, on or
after the date hereof one share of Common Stock at any time on or before 5:00
p.m., New York time, on

                                      -3-
<PAGE>   5

the earlier to occur of (i) the 60th day after default by IMR in its obligations
under the Credit Agreement if such default shall not have been cured or waived
by such 60th day, and (ii) the fifth anniversary of the date of this Agreement
(the "Expiration Date") at the lesser of (i) $5.25 per share and (ii) if there
shall have occurred a Rights Offering (as defined in the Stock Purchase
Agreement, dated as of July 8, 1991, between the Company, Hanover Direct, Inc.
and North American Resources Limited (the "Stock Purchase Agreement")), a price
per share equal to the product of 1.75 multiplied by the Rights Offering Price
(as defined in the Stock Purchase Agreement) (the "Exercise Price"), as the same
may be adjusted pursuant to Annex B hereof.

            (b) Subject to the provisions of this Agreement, and provided that
IMR shall not at the time be in default in its obligations under the Credit
Agreement, the Holder of each Warrant shall have the right, which may be
exercised as expressed in such Warrant, to purchase from the Company (and the
Company shall issue and sell to each such Holder) one fully paid and
nonassessable share of Common Stock upon surrender to the Company, or its duly
authorized agent, of the Certificate or Certificates representing such Warrant
or Warrants, with the form of election to purchase on the reverse thereof duly
filled in and signed, and upon payment to the Company of the Exercise Price.
Payment of such Exercise Price may be made in cash or by certified or official
bank check or wire transfer payable to the order of the Company.

            (c) Subject to Section 6 hereof, upon such surrender of Warrants,
and payment of the Exercise Price as aforesaid, the Company shall issue and
cause to be delivered to the Holder or upon the written order of such Holder and
(subject to receipt of evidence of compliance with the Act in accordance with
the provisions of Section 4 of this Agreement) in such name or names as the
Holder may designate, a Certificate or Certificates for the number of full
Warrant Shares so purchased, together with cash or check, as provided in Section
10 of this Agreement, in respect of a fraction of a share of such stock
otherwise issuable upon such surrender and, if the number of Warrants
represented by a Certificate shall not be exercised in full, a new Certificate
or Certificates, executed by the Company, for the balance of the number of whole
Warrants represented by the surrendered Certificate.

            (d) If permitted by applicable law, such Certificate or Certificates
shall deemed to have been issued and any person so designated to be named
therein shall be deemed to have become a holder of record of such shares as of
the date of the surrender of such Warrants and

                                      -4-
<PAGE>   6

payment of the Exercise Price. The Warrants shall be exercisable, at the
election of the Holder thereof, either as an entirety or from time to time for
part of the shares specified therein.

            6. Payment of Taxes. The Company will pay all documentary stamp
taxes, if any, attributable to the initial issuance of Warrant Shares upon the
exercise of Warrants; provided, however, that the Company shall not be required
to pay any tax or taxes which may be payable in respect of any transfer involved
in the issue or delivery of any Warrants or certificates for Warrant Shares in a
name other than that of the Holder of such Warrants.

            7. Mutilated Missing Certificate. In case any Certificates shall be
mutilated, lost, stolen or destroyed, the Company shall issue and deliver in
exchange and in substitution for and upon cancellation of the mutilated
Certificates, or in lieu of and in substitution for the Certificates lost,
stolen or destroyed, new Certificates of like tenor and representing an
equivalent right or interest; but only upon receipt of evidence satisfactory to
the Company of such loss, theft or destruction of such Certificates and of
indemnity or bond, if requested, also satisfactory to the Company. An applicant
for such substitute Certificates shall also comply with such other reasonable
regulations and pay such other reasonable charges as the Company may prescribe.

            8. Reservation of Warrant Shares; Authorization.

            8.1 Reservation of Warrant shares. The Company has reserved and will
keep available, out of the authorized and unissued shares of Common Stock or the
authorized and issued shares of Common Stock held in the Company's Treasury, the
full number of shares sufficient to provide for the exercise of the rights of
purchase represented by all the outstanding Warrants. The transfer agent for the
Common Stock (the "Transfer Agent") and every subsequent Transfer Agent for any
shares of the Company's capital stock issuable upon the exercise of any of the
rights of purchase aforesaid are hereby irrevocably authorized and directed at
all times until the Expiration Date to reserve such number of authorized and
unissued shares as shall be requisite for such purpose. The Company will keep a
copy of this Agreement on file with the Transfer Agent and with every subsequent
Transfer Agent for any shares of the Company's capital stock issuable upon the
exercise of the rights of purchase represented by the Warrants. The Company will
supply such Transfer Agent with duly executed stock certificates for such
purpose and will itself provide or otherwise make available any cash or check
which may be issuable as provided in Section 10 of this Agreement. The

                                      -5-
<PAGE>   7

Company will furnish to such Transfer Agent a copy of all notices of adjustments
and certificates related thereto, transmitted to each holder pursuant to this
Agreement. All Warrants surrendered in the exercise of the rights thereby
evidenced shall be cancelled.

            8.2 Authorization. This Agreement has been duly and validly executed
and delivered by the Company and this Agreement constitutes a valid and binding
agreement of the Company enforceable in accordance with its terms (except in
each such case as enforceability may be limited by bankruptcy, insolvency,
reorganization and other similar laws now or hereafter in effect relating to or
affecting creditors' rights generally and except that the remedy of specific
performance and injunctive and other forms of equitable relief are subject to
certain equitable defenses and to the discretion of the court before which any
proceeding therefor may be brought and except as rights to indemnity and
contribution hereunder and thereunder may be limited by federal or state
securities laws). The execution, delivery and performance of this Agreement by
the Company and compliance by the Company with the terms and provisions hereof
do not and will not violate any provision of any law, rule or regulation, order,
writ, judgment, injunction, statute, decree, determination or award having
applicability to the Company, or any of its properties or assets, except that
ownership of the Warrant may violate Nevada gaming laws if the Holder has not
complied with said laws applicable to it. The execution, delivery and
performance of this Agreement by the Company and compliance by the Company with
the terms and provisions hereof do not and will not (i) conflict with or result
in a breach of or constitute a default under any provision of the charter or
by-laws of the Company; or (ii) give rise to an event of default which may
result in the acceleration of any material amount of Indebtedness (as such term
is defined in the Credit Agreement) or an event of default under any other
material contractual obligation of the company. The Company covenants that upon
issuance and delivery against payment pursuant to the term of their Warrant
Agreement, all Warrant Shares will be validly issued, fully paid and
nonassessable outstanding shares of Common Stock of the Company. The Company
represents and warrants that the number of outstanding shares of Common stock of
the Company is 13,910,177. Except as set forth on Schedule 1 attached hereto,
there are not outstanding subscriptions, convertible Securities, warrants or
other rights, agreements or commitments to subscribe for or purchase or acquire
from the Company, or any contracts providing for the issuance of, or the
granting of rights to acquire any capital stock of the Company or any securities
convertible or exchangeable for any such capital stock. There are no preemptive
rights with respect to and there are no outstanding contractual obligations of
the

                                      -6-
<PAGE>   8

Company to repurchase, redeem or otherwise acquire any shares of the Company.

            9. Adjustments of Exercise Price and Number of Shares. The Exercise
Price and Warrant shares shall be adjusted under certain circumstances in
accordance with Annex B attached hereto, and expressly incorporated herein and
made a part hereof.

            10. Fractional Shares of Common Stock. The Company shall not be
required to issue fractional Warrant Shares on the exercise of Warrants. If more
than one Warrant shall be presented for exercise in full at the same time by the
same Holder, the number of full Warrant Shares which shall be issuable upon the
exercise thereof shall be computed on the basis of the aggregate number of
Warrant Shares purchasable on exercise of the Warrants so presented. If any
fraction of a Warrant Share would, except for the provisions of this Section 10,
be issuable on the exercise of any Warrant (or specified portion thereof), the
Company shall pay an amount in cash equal to the Closing Price for one share of
the Common Stock, on the trading day immediately preceding the date the Warrant
is presented for exercise, multiplied by such fraction. The Company may also
make any payment required by this Section 10 by check.

            11. Registration Rights. The Holder shall have those registration
rights with respect to the Warrant Shares as set forth in the Registration
Rights Agreement, dated as of the date hereof, in the form attached hereto as
Annex C, between IMR, the Company and North American Resources Limited (the
"Registration Rights Agreement"), provided that if IMR shall at the time be the
Holder, IMR shall not be entitled to such registration rights if it shall be in
default under the credit Agreement, unless such default shall have been cured or
waived by the 60th day after occurence thereof,

            12. Rights as Stockholders; Notices to Holders. Nothing contained in
this Agreement or in any of the Warrants shall be construed as conferring upon
the holders or their transferees the right to vote or to receive dividends or to
consent to or receive notice as stockholders in respect of any meeting of
stockholders for the election of directors of the Company or any other matter,
or any rights whatsoever as stockholders of the Company. If, however, at any
time prior to the expiration of the Warrants and prior to their exercise, any of
the following events shall occur:

            (a) the Company shall take any action which requires an adjustment
      under Annex B attached hereto; or

                                      -7-
<PAGE>   9

            (b) a merger occurs to which the Company is a party and for which
      approval of any stockholders of the Company is required, or of the
      conveyance or transfer of the properties and assets of the Company as, or
      substantially as, an entirety, or of any reclassification or change of
      outstanding Warrant Shares issuable upon exercise of the Warrants (other
      than a change in par value, or from par value to no par value, or from no
      par value to par value, or as a result of a subdivision or combination);
      or

            (c) voluntary or involuntary dissolution, liquidation, or winding-up
      of the Company;

then in any one or more of said events the Company shall give notice in writing
of such event to the Holders at least 20 days (10 days in any case specified in
clauses (a) and (b) above) prior to the date fixed as a record date or the date
of closing the transfer books for the determination of the stockholders entitled
to such dividend, distribution, or subscription rights, or for the determination
of stockholders entitled to vote on such proposed merger, sale,
reclassification, dissolution, liquidation or winding-up. Such notice shall
specify such record date or the date of closing the transfer books, as the case
may be.

            13. Miscellaneous.

            (a) Notices. Any notice pursuant to this Agreement to be given or
made by the Holder of any Warrant Certificate to the Company shall be
sufficiently given or made if sent by first-class mail, postage prepaid,
addressed as follows:

            The Horn & Hardart Company
            c/o Hanover Direct, Inc.
            1500 Harbor Boulevard
            Weehawken, New Jersey 07087

            Attention: Michael P. Sherman
                       Executive Vice President
                       and General Counsel

Notices or demands authorized by this Agreement to be given or made to the
Holder of any Warrant shall sufficiently given or made (except as otherwise
provided in this Agreement) if sent by first-class postage prepaid, addressed to
such Holder at the address such holder as shown on the Warrant Register.

            (b) Governing Law. This Agreement shall if governed by and
construed in accordance with the laws of the

                                      -8-
<PAGE>   10

            State of New York, without giving effect to principles of conflict
of laws.

            (c) Amendments and Waivers. This Agreement may be amended, modified
or superseded only by written instrument signed by all of the parties hereto,
and any of the terms, provisions, and conditions hereof may be waived, only by
a written instrument signed by the party waiving such term, provision or
condition.

            (d) Successors. All the covenants and provisions of this Agreement
by or for the benefit of the Company or the Holders shall bind and inure to the
benefit of their respective successors and assigns hereunder.

            (e) Merger or Consolidation of the Company. So long as Warrants
remain outstanding, until the Expiration Date, the Company will not merge or
consolidate with or into, or sell, transfer to or lease all a substantially all
of its property to, any other corporation unless the successor or purchasing
corporation, as the case may be (if not the Company), shall expressly assume, by
supplemental agreement executed and delivered to the Holder, the due and
punctual performance and observance of each and every covenant and condition of
this Agreement to be performed and observed by the Company.

            (f) Benefits of this Agreement. Nothing in this Agreement shall be
construed to give to any person or corporation other than the Company and the
Holder, any legal or equitable right, remedy or claim under this Agreement, but
this Agreement shall be for the sole and exclusive benefit of the Company and
the Holder of the Warrants and Warrant Shares.

            (g) Captions. The captions of the sections and subsections of this
Agreement have been inserted for convenience only and shall have no substantive
effect.

            (h) Counterparts. This Agreement may be executed in any number of
counterparts, each of which so executed shall be deemed to be an original; but
such counterparts together shall constitute but one and the same instrument.

            (i) Termination. This Agreement shall terminate at the close of
business on the Expiration Date or any earlier date when all Warrants have been
exercised, provided that the registration rights provided for in the
Registration Rights Agreement shall remain in full force and effect to the
extent provided for therein.

            (i) Specific Performance. The parties hereto acknowledge and agree
that in the event of any breach of

                                      -9-
<PAGE>   11

this Agreement, IMR would be irreparably harmed and would not be made whole by
monetary damages. It is accordingly agreed that IMR, in addition to monetary
damage and any other remedy to which it may be entitled at law or in equity,
shall be entitled to compel specific performance of this Agreement, including,
without limitation, the Registration Rights set forth in the Registration Rights
Agreement.

                                      -10-
<PAGE>   12

            IN WITNESS WHEREOF, the parties hereto have caused this Agreement to
be duly executed as of the day, month and year first above written.

                                THE HORN & HARDART COMPANY

                                By: /s/ Jack E. Rosenfeld
                                    --------------------------
                                    Name: Jack E. Rosenfeld
                                    Title: President

                                INTERCONTINENTAL MINING &
                                 RESOURCE LIMITED

                                By: /s/ [ILLEGIBLE]
                                    --------------------------
                                    Name:
                                    Title: VP

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