Document:

EXHBIT 4.1.8.
                                                                   -------------

                             GREENBRIAR CORPORATION

                  Certificate of Designations, Preferences and
                            Rights of Preferred Stock
                     By Resolution of the Board of Directors

         We,  Gene S  Bertcher,  Executive  Vice  President,  and L. A.  Tuttle,
Assistant  Secretary,  of Greenbriar  Corporation,  a corporation  organized and
existing  under  the  laws of the  State  of  Nevada,  in  accordance  with  the
provisions of Section 78.195 of the Nevada Revised Statutes  thereof,  DO HEREBY
CERTIFY:

         That,  pursuant to authority  conferred  upon the Board of Directors by
the Articles of  Incorporation  (or an amendment  thereto) of said  Corporation,
said Board of  Directors  adopted,  by  unanimous  written  consent,  an amended
resolution  providing  for the  issuance  of a series of Six  Million  shares of
Series H Preferred Stock, which resolution is as follows:

         RESOLVED,  that pursuant to the authority  vested in the Board
         of  Directors  of  the  Corporation  in  accordance  with  the
         provisions of its Articles of  Incorporation,  effective as of
         the date this resolution is filed with the Nevada Secretary of
         State, a series of Preferred  Stock of the Corporation be, and
         it hereby is  created,  such series of  Preferred  Stock to be
         designated  Series H Preferred  Stock, to consist of 6,000,000
         shares  with a par  value of $0.10  per share and to have such
         features as set forth on Exhibit A to these minutes.

         IN  WITNESS  WHEREOF,  said  Greenbriar   Corporation  has  caused  its
corporate seal to be hereunto affixed and this certificate to be signed by James
R. Gilley, its President,  and Robert L. Griffis,  its Secretary,  effective the
12th day of July, 2001.

                                   By:      /s/ Gene S.  Bertcher
                                       ----------------------------------------
                                   Gene S. Bertcher, Executive Vice President

                                   By:      /s/ L.  A.  Tuttle
                                       ----------------------------------------
                                   L.  A.  Tuttle, Assistant Secretary

                                 Page 4 of 200
<PAGE>

STATE OF TEXAS

COUNTY OF DALLAS

         On July 12, 2001,  personally appeared before me, a Notary Public, Gene
S. Bertcher, Executive Vice President, and L. A. Tuttle, Assistant Secretary, of
Greenbriar Corporation, who acknowledged that they executed the above instrument
on behalf of said Corporation.

(Seal)                               /s/ Celeste Byars
                                     -------------------------------------------
                                     Notary Public in and for the State of Texas

My Commission Expires:
6/21/04

                                    EXHIBIT A

                            SERIES H PREFERRED STOCK

         1.       Greenbriar Corporation (the "Company") establishes a series of
Preferred  Stock  pursuant  to  the  authority  contained  in  the  Articles  of
Incorporation of the Company, to be known as Series H Preferred Stock, par value
$0.10 per share.

         2.       There shall be authorized the issuance of 6,000,000  shares of
Series H Preferred Stock.

         3.       The issue price of Series H Preferred Stock shall be $2.00 per
share  (the  "Issue  Price")  issuable  in  exchange  for cash or as  additional
collateral value to secured lenders to the Company or its subsidiaries.

         4.       No dividend  shall be payable on the Series H Preferred  Stock
except as shall be declared from time to time by the Board of Directors.

         5.       In the event of any dissolution,  liquidation or winding up of
the  Company,  whether  voluntary  or  involuntarily,  the  holders  of Series H
Preferred Stock, without any preference among them, shall be entitled to receive
in cash  out of the  assets  of the  Company,  whether  capital  or  surplus  or
otherwise, before any distribution of the assets shall be made to the holders of
Common  Stock,  an amount equal to the  aggregate  Issue Price of their  shares,
together,  in all  cases,  with  any  unpaid  dividends,  if any,  whether  such
dividends are earned, declared or otherwise, to the date fixed for such payment.
After  payment  to the  holders  of the  Series  H  Preferred  Stock of the full
preferential  amounts  hereinbefore  provided  for,  the  holders  of  Series  H
Preferred  Stock  will have no other  rights  or claims to any of the  remaining
assets  of the  Company,  either  upon  distribution  of  such  assets  or  upon
dissolution,  liquidation or winding up. The sale of all or substantially all of
the property of the Company to, or the merger,  consolidation or  reorganization
of the Company into or with, any other company, or the purchase or redemption by
the  Company  of any  shares of any class of its  Preferred  Stock or its Common
Stock or any other class of its stock  shall not be deemed to be a  distribution
of assets or a  dissolution,  liquidation or winding up for the purposes of this
paragraph.

                                 Page 5 of 200
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         6.       The Company may, at its option,  at any time, redeem the whole
or any part of the shares of Series H Preferred  Stock, and the redemption price
thereof  shall be equal to the Issue Price of the shares so  redeemed,  plus the
amount of any unpaid  dividends,  if any,  to the date of such  redemption.  The
Company may only  redeem  outstanding  shares of Series H Preferred  Stock after
giving each  record  holder of Series H Preferred  Stock at such  holder's  last
address, as shown on the records of the Company, at least ten (10), but not more
than fifty (50) days' notice thereof in writing by mail, postage prepaid. Except
as may be limited herein, all such redemptions of Series H Preferred Stock shall
be effected in accordance  with any procedure for  redemptions  set forth in the
Act.  Shares of Series H Preferred Stock which are redeemed shall be restored on
the status of authorized but unissued shares.

         On or before the date fixed for redemption,  the Company,  if it elects
to  call  such  shares  for  redemption,  shall  provide  for  payment  of a sum
sufficient  to redeem the shares  called  for  redemption  either (1) by setting
aside the sum,  separate  from its other funds,  in trust for the benefit of the
holders of the shares to be redeemed, or (2) by depositing such sum in a bank or
trust company as a trust fund, with  irrevocable  instructions  and authority to
the bank or trust  company to give or complete the notice of  redemption  and to
pay,  on or  after  the date  fixed  for  redemption,  the  redemption  price on
surrender  of  certificates  evidencing  the shares of Series H Preferred  Stock
called for  redemption.  From and after the date fixed for  redemption,  (a) the
shares shall be deemed to be redeemed,  (b) such setting  aside or deposit shall
be deemed to  constitute  full  payment of the shares,  (c) the shares  shall no
longer be deemed to be  outstanding,  (d) the holders  thereof shall cease to be
shareholders   with  respect   thereto,   except  the  right  to  receive  their
proportionate  share of the fund set aside  pursuant  hereto or  deposited  upon
surrender of their  respective  certificates.  Any interest accrued on funds set
aside pursuant hereto or deposited  shall belong to the Company.  If the holders
of shares do not,  within six (6) years after such deposit,  claim any amount so
deposited for  redemption  thereof,  the bank or trust company shall upon demand
pay over to the Company the balance of the funds so  deposited,  and the bank or
trust company shall thereupon be relieved of all responsibility to such holders.

         7.       The Shares of Series H Preferred Stock shall not be redeemable
by the holders thereof.

                                 Page 6 of 200
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         8.       The holders of Series H  Preferred  Stock shall have the right
to vote on all matters to come before a meeting of the Shareholders, at the rate
of one vote for each  share of common  stock  into  which the shares of Series H
Preferred  Stock are  convertible.  Holders of Series H Preferred Stock shall be
entitled to receive  notice of all  meetings of  shareholders  of the Company at
which they are  entitled to vote.  In the event the shares of Series H Preferred
Stock are held as  collateral  for the benefit of lenders to the Company or to a
Subsidiary,  neither  the lender nor the  holders  shall  obtain any such voting
rights  unless and until there shall have  occurred a "change in control" of the
Company  or an event of  default  under  the terms of loan  documents  with such
lenders.  Any shares of Series H Preferred Stock issued for cash shall have full
voting rights as provided  herein.  For purposes of these Sections,  a change of
control shall mean any one or more of the following events:

         (a)      An  acquisition  (other than directly from the Company) of any
voting securities of the Company (the "Voting  Securities") by any "Person" (the
term person is used for the purposes of Section 13(d) of the Securities Exchange
Act of 1934,  as amended  (the  "Exchange  Act"),  immediately  after which such
Person has "Beneficial  Ownership" (within the meaning of Rule 13d-3 promulgated
under the Exchange  Act) of  twenty-five  percent  (25%) or more of the combined
voting power of the Company's  then  outstanding  Voting  Securities;  provided,
however,  in  determining  whether  a Change in  Control  has  occurred,  Voting
Securities  which are acquired in a "Non-Control  Acquisition"  (as  hereinafter
defined)  shall not  constitute  an  acquisition  which  would cause a change in
Control.  A  "Non-Control  Acquisition"  shall  mean  an  acquisition  by (i) an
employee  benefit plan (or trust forming a part  thereof)  maintained by (A) the
Company or (b) any corporation or other Person of which a majority of its voting
power or its voting equity  securities or equity interest is owned,  directly or
indirectly, by the Company (for purposes of this definition, a "Subsidiary" (ii)
the  Company  or its  Subsidiaries,  or (iii) any  Person in  connection  with a
"Non-Control Transaction" (as hereinafter defined);

         (b)      The  Individuals  who, as of June 30, 2001, are members of the
Board (the  "Incumbent  Board"),  cease to constitute at least  two-third of the
members  of the  Board.  Provided,  however,  that if  after  the  election,  or
nomination  for  election  by the  Company's  common  stockholders,  if any  new
director was approved by a vote of at least  two-thirds of the Incumbent  Board,
such new director shall, for purposes of this Plan, be considered as a member of
the Incumbent  Board;  provided  further,  however,  that no individual shall be
considered a member of the Incumbent Board if such individual  initially assumed
office as a result of either an  actual or  threatened  "Election  Contest"  (as
described in Rule 14a-11  promulgated under the Exchange Act) or other actual or
threatened solicitation of proxies or consents by or on behalf of a Person other
than the board (a "Proxy Contest") including by reason of any agreement intended
to avoid or settle any Election Contest or Proxy Contest; or

                                 Page 7 of 200
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         (C)      Approval by stockholders of the Company of:

         (1)               a merger,  consolidation or reorganization  involving
                  the   Company,   unless  such  a  merger,   consolidation   or
                  reorganization is a "Non-Control  Transaction." A "Non-Control
                  Transaction"   shall   mean   a   merger,   consolidation   or
                  reorganization of the Company where:

                  (i)               the stockholders of the Company, immediately
                           before such merger,  consolidation or reorganization,
                           own directly or indirectly immediately following such
                           merger,  consolidation  or  reorganization,   seventy
                           percent  (70%) of the  combined  voting  power of the
                           outstanding  Voting  Securities  of  the  corporation
                           resulting  from  such  merger  or   consolidation  or
                           reorganization   (the  "Surviving   Corporation")  in
                           substantially  the same proportion as their ownership
                           of the  Voting  Securities  immediately  before  such
                           merger, consolidation or reorganization,

                  (ii)              the  individuals  who were  members  of  the
                           Incumbent Board immediately prior to the execution of
                           the    agreement    providing    for   such   merger,
                           consolidation or  reorganization  constitute at least
                           two-third of the members of the board of directors of
                           the   Surviving   Corporation,   or   a   corporation
                           beneficially directly or indirectly owning a majority
                           of   the   Voting   Securities   of   the   Surviving
                           Corporation, and

                  (iii)             no Person other than (a)  the  Company,  (b)
                           any Subsidiary, (c) any employee benefit plan (or any
                           trust  forming  a  part  thereof)  maintained  by the
                           Company,   the  Surviving   Company,   the  Surviving
                           Corporation,  or any  Subsidiary,  or (d) any  Person
                           who, immediately prior to such merger,  consolidation
                           or   reorganization   has  Beneficial   Ownership  of
                           fifty-one   percent   (51%)   or  more  of  the  then
                           outstanding   Voting   Securities,   has   Beneficial
                           Ownership of fifty-one  percent  (51%) or more of the
                           combined voting power of the Surviving  Corporation's
                           then outstanding Voting Securities.

         (2)               A plan of complete  liquidation or dissolution of the
                  Company, or

         (3)               An agreement for the sale or other disposition of all
                  or  substantially  all of the  assets  of the  Company  to any
                  Person (other than a transfer to a Subsidiary).

         9.       The  holders  of  shares  of any and all  series  of  Series H
Preferred  Stock  outstanding  on the  record  date for any such  meeting of the
shareholders  shall be entitled to vote,  as a single  class,  upon any proposed
amendment to the Company's Articles of Incorporation, and their consent shall be
required for any action of the Board of Directors,  if such  amendment or action
would (i)  increase or decrease the  aggregate  number of  authorized  shares of
Series H Preferred Stock, (ii) increase or decrease the Issue Price of shares of

                                 Page 8 of 200
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Series  H  Preferred  Stock,  (iii)  effect  an  exchange,  reclassification  or
cancellation  of all or part of the  shares of Series H  Preferred  Stock,  (iv)
effect an  exchange,  or create a right of  exchange,  of all or any part of the
shares of another class into shares of Series H Preferred  Stock, (v) change the
designations,  preferences,  limitations,  or  relative  rights of the  Series H
Preferred Stock herein,  (vi) change the shares of Series H Preferred Stock into
the same or a different  number of shares,  either with or without par value, of
the same class or another class or classes,  or (vii) cancel or otherwise affect
accumulated but undeclared  dividends on the shares of Series H Preferred Stock,
and no such  proposed  amendment  or action shall be deemed to have been adopted
and approved without the affirmative vote or consent of holders of a majority of
shares of Series H Preferred Stock then outstanding.

         10.      Subject to and upon  compliance  with the  provisions  hereof,
each holder of shares of Series H Preferred  Stock shall have the right, at such
holder's  option,  to convert  all or any  portion  (in  minimum  increments  of
$100,000 per  exercise if for less than all shares  owned) of the Issue Price of
shares of Series H  Preferred  Stock into  shares of common  stock (the  "Common
Stock") of the Company at a  conversion  rate of five (5) shares of common stock
for each one  share of  Series H  Preferred  Stock  (referred  to  herein as the
"Conversion  Price").  The Conversion Price is greater than the book value as of
June 30,  2001 or the fair  market  value of the  Common  Stock as quoted on the
American Stock Exchange on the last trading day prior to June 30, 2001, the date
of issue.

         The  Conversion  Price  and  number  of  common  shares  issuable  upon
conversion  shall be adjusted  to take into  account  any and all  increases  or
reductions  in the number of shares of Common Stock  outstanding  which may have
occurred  since the date of issuance of the Series H Preferred  Shares by reason
of a split, share dividend,  merger,  consolidation,  or other capital change or
reorganization  affecting the number of  outstanding  common shares so as fairly
and equitably to preserve so far as reasonably  possible the original conversion
rights of the Series H Preferred  Shares,  and  provided  further that when such
adjustment  is  required,  no notice of  redemption  shall be given  until  such
amendment and adjustments shall have been accomplished.

         Upon conversion of all or a part of the outstanding  Series H Preferred
Shares,  the Series H  Preferred  Shares  surrendered  for  conversion  shall be
cancelled and returned to the status of authorized but unissued shares. Under no
circumstances shall the Company be obligated to issue any fractional shares.

         In order to exercise the conversion  privilege,  the holder of Series H
Preferred  Stock  shall  present  the  shares  to the  Company  at  its  office,
accompanied  by written  notice to the Company that the holder elects to convert
all or a portion of Series H Preferred  Stock.  Such notice shall also state the
name or names  (with the  address  or  addresses)  in which the  certificate  or
certificates   representing  Common  Stock  which  shall  be  issuable  on  such
conversion  shall be issued.  As soon as  practicable  after the receipt of such
notice and the  presentation of the Shares of the Series H Preferred  Stock, the
Company shall issue and deliver to the holder a certificate or certificates  for
the number of full shares of common stock issuable upon the conversion of Series
H Preferred Shares (or portion hereof).  Such conversion shall be deemed to have
been  effected  immediately  prior to the close of business on the date on which
such notice shall have been received by the Company,  and the shares of Series H
Preferred Stock shall have been presented as aforesaid,  and conversion shall be

                                 Page 9 of 200
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at the  Conversion  Price in effect at such time, and at such time the rights of
the holder of the shares of Series H Preferred  Stock as such holder shall cease
(to the extent the shares of Series H Preferred  Stock are so converted) and the
person or persons in whose name or names any  certificate  or  certificates  for
Common  Stock shall be  issuable  upon such  conversion  shall be deemed to have
become the holder or holders of record of the Common Stock represented  thereby.
Upon  conversion  by a holder of only a part of the shares of Series H Preferred
Stock held by such holder,  new shares of Series H Preferred Stock  representing
the  shares  not  converted  shall  be  issued  in  the  name  of  such  holder.
Notwithstanding  the  holder's  designation  of names in which  shares of Common
Stock are to be issued,  nothing  contained  in this  Section  shall  permit the
holder of the Series H Preferred Stock to make any transfer or assignment of its
rights hereunder which is otherwise  prohibited by the Series H Preferred Shares
or by law.

                                 Page 10 of 200EXHIBIT 10.23.1.
                                                                ----------------

             SERIES H CONVERTIBLE PREFERRED STOCK PURCHASE AGREEMENT

         This agreement to purchase stock (this "Agreement"), is entered into as
of July 13th, 2001, by and among Greenbriar  Corporation,  a Nevada  corporation
(the "Company"),  and Wedgwood  Partners,  Ltd., Limited  Partnership,  a Nevada
limited partnership (the "Purchaser").

         WHEREAS,  subject  to the  terms  and  conditions  set  forth  in  this
Agreement,  the  Company  desires  to issue  and sell to the  Purchaser  and the
Purchaser  desires to purchase from the Company for an aggregate  purchase price
of $9,600,000,  6,000,000 shares of the Company's Series H Convertible Preferred
Stock,  par value $0.10 per share (the  "Preferred  Stock"),  having the rights,
restrictions,  privileges  and  preferences  set  forth  in the  Certificate  of
Designation  of Rights and  Preferences  of Series H  Preferred  Stock  attached
hereto  as  Exhibit  A  (the  "Certificate  of  Designation"),   and  which  are
convertible into shares of the Company's common stock, $0.01 par value per share
(the "Common Stock").

         NOW,  THEREFORE,  IN CONSIDERATION of the mutual covenants contained in
this Agreement,  and for other good and valuable  consideration  the receipt and
adequacy of which are hereby  acknowledged,  the Company and the Purchaser agree
as follows:

                                    ARTICLE I

                                PURCHASE AND SALE

         1.1      The  Purchase.  The  Company  has,  or before the  Closing (as
hereinafter  defined)  will  have,  authorized  the  issuance  and sale of up to
6,000,000  shares of the  Preferred  Stock,  having  the  rights,  restrictions,
privileges  and  preferences  as set forth in the  Certificate  of  Designation.
Subject to the terms and  conditions  set forth in this  Agreement,  the Company
shall issue and sell to the Purchaser and the Purchaser  shall purchase from the
Company  6,000,000  shares of Preferred  Stock at a purchase  price of $1.60 per
share,  for an  aggregate  purchase  price of  $9,600,000.  The  closing  of the
purchase and sale of the Preferred Stock (the "Closing") shall take place at the
offices of the Company, immediately following the execution hereof or such later
date as the  Company  and  Purchasers  may  agree.  The date of the  Closing  is
hereinafter referred to as the "Closing Date."

                                 Page 11 of 200
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         1.2      Closing.  At  the  Closing,   the  Company  shall  deliver  to
Purchaser  this  Agreement and a certificate  for the shares of Preferred  Stock
registered in such Purchaser's name. At the Closing,  Purchaser shall deliver to
the Company this Agreement,  an executed  version of the note as attached hereto
as Exhibit B, and an executed  version of the note as attached hereto as Exhibit
C.

                  Certain Defined Terms.   For purposes of this Agreement:

                           "Business  Day" shall  mean any day except  Saturday,
Sunday  and any day which  shall be a federal  legal  holiday  or a day on which
banking  institutions in the State of Texas are authorized or required by law or
other governmental action to close;

                           "Person"   means  an   individual   or   corporation,
partnership,  trust, incorporated or unincorporated association,  joint venture,
limited  liability  company,  joint stock  company,  government (or an agency or
subdivision thereof) or other entity of any kind;

                           "Transaction  Documents"  shall mean this  Agreement,
the Certificate of Designations  and the Certificate  representing the Preferred
Stock.

                                   ARTICLE II

                         REPRESENTATIONS AND WARRANTIES

         2.1      Representations  and  Warranties  of the Company.  The Company
hereby makes the following representations and warranties to the Purchaser:

                  (a)      Organization  and  Qualification.  The  Company  is a
corporation duly  incorporated,  validly existing and in good standing under the
laws of the State of Nevada with the requisite  corporate power and authority to
own and use its  properties and assets and to carry on its business as currently
conducted.  The Company is duly qualified to do business and is in good standing
as a  foreign  corporation  in each  jurisdiction  in which  the  nature  of the
business conducted or property owned by it makes such  qualification  necessary,
except where the failure to be so qualified or in good standing, as the case may
be, could not, individually or in the aggregate,  adversely affect the legality,
validity  or  enforceability  of  the  Securities  (as  defined  below)  or  the
Transaction  Documents,  or have or result in a material  adverse  effect on the
results of operations,  assets, prospects, or condition (financial or otherwise)
of the Company (a "Material Adverse Effect").

                  (b)      Authorization;   Enforcement.  The  Company  has  the
requisite  corporate  power and  authority to enter into and to  consummate  the
transactions  contemplated by the  Transaction  Documents and otherwise to carry
out its obligations hereunder and thereunder. The execution and delivery of each
of the  Transaction  Documents by the Company and the  consummation by it of the
transactions  contemplated  thereby have been duly  authorized  by all necessary
action on the part of the  Company,  and no further  action is  required  by the
Company. Each of the Transaction Documents has been duly executed by the Company
and, when delivered (or filed,  as the case may be) in accordance with the terms
hereof and thereof, will constitute valid and binding obligations of the Company
enforceable against the Company in accordance with their terms.

                                 Page 12 of 200
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                  (c)      Issuance  of  the  Preferred  Stock.  The  shares  of
Preferred  Stock are duly authorized and, when issued and paid for in accordance
with  the  terms  hereof,  will be duly  and  validly  issued,  fully  paid  and
non-assessable,  free and clear of all liens,  encumbrances  and rights of first
refusal of any kind (collectively,  "Liens"). The Company has on the date hereof
and will, at all times while the  Preferred  Stock is  outstanding,  maintain an
adequate  reserve  of duly  authorized  shares of  Common  Stock,  reserved  for
issuance  to the  holders of the  Preferred  Stock,  to enable it to perform its
conversion and other obligations under the Transaction Documents with respect to
the Preferred  Stock. The shares of Common Stock issuable upon conversion of the
Preferred Stock are referred to herein as the "Underlying Shares." The shares of
Preferred Stock and the Underlying  Shares are  collectively  referred to herein
as, the  "Securities."  When issued upon conversion of the Preferred  Stock, the
Underlying  Shares  will be duly  authorized,  validly  issued,  fully  paid and
nonassessable,  free and clear of all Liens.  Assuming the  representations  and
warranties of the  Purchasers  contained in Article 2.2 are true,  (i) the offer
and sale of the Preferred Stock by the Company,  complies with or is exempt from
all applicable  Federal and state  securities laws and Purchaser will not have a
right of rescission or damages with respect thereto and (ii) the issuance of the
Underlying  Shares upon conversion of the Preferred Stock will comply with or be
exempt from all applicable  Federal and state  securities  laws and no Purchaser
will have a right of rescission or damages with respect thereto.

                  (d)      No Conflicts. The execution, delivery and performance
of the Transaction  Documents by the Company and the consummation by the Company
of the  transactions  contemplated  hereby  and  thereby do not and will not (i)
conflict with or violate any provision of the Company's  certificate or articles
of incorporation, bylaws or other charter documents (each as amended through the
date hereof),  or (ii) conflict with, or constitute a default (or an event which
with notice or lapse of time or both would become a default)  under,  or give to
others any rights of termination,  amendment, acceleration or cancellation (with
or without notice,  lapse of time or both) of, any agreement,  credit  facility,
debt or other  instrument  (evidencing  a Company  debt or  otherwise)  or other
understanding  to which the Company is a party or by which any property or asset
of the Company is bound or affected,  or (iii) result in a violation of any law,
rule, regulation,  order, judgment,  injunction,  decree or other restriction of
any court or governmental  authority to which the Company is subject  (including
federal and state securities laws and regulations),  or by which any property or
asset of the  Company  is bound or  affected.  Subject  to the  accuracy  of the
representations  and  warranties  of the  Purchaser set forth in Article 2.2, no
registration  or filing with,  or consent or approval of or other action by, any
Federal,  state or other  governmental  agency or  instrumentality,  domestic or
foreign,  under  laws and  regulations  thereof  as now in  effect is or will be
necessary for the valid  execution,  delivery and  performance by the Company of
any of the  Transaction  Documents  (other than the filing of the Certificate of
Designations),  the issuance,  sale and delivery of the  Securities,  other than
filings  pursuant to state  securities laws (all of which filings have been made
by the Company or will be made within the period of time  required by such state
securities  laws) in connection with the sale of shares of Preferred Stock under
this Agreement.

                                 Page 13 of 200
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                  (e)      Filings,  Consents and Approvals.  The Company is not
required  to obtain any  consent,  waiver,  authorization  or order of, give any
notice to, or make any filing or registration  with, any court or other federal,
state, local or other governmental  authority or other Person in connection with
the  execution,  delivery  and  performance  by the  Company of the  Transaction
Documents,  other than the filing of the  Certificate of  Designations  with the
Nevada Secretary of State.

                  (f)      Litigation;  Proceedings.  There is no action,  suit,
inquiry,  notice of violation,  proceeding or  investigation  pending or, to the
knowledge of the Company,  threatened against or affecting the Company or any of
its respective  properties before or by any court,  arbitrator,  governmental or
administrative agency or regulatory authority (federal,  state, county, local or
foreign)   (collectively,   an  "Action")  and/or  which  adversely  affects  or
challenges the legality,  validity or  enforceability  of any of the Transaction
Documents or the Securities.

                  (g)      Private  Offering.   Assuming  the  accuracy  of  the
representations   and   warranties  of  the  Purchaser  set  forth  in  Sections
2.2(b)-(g),  the offer,  issuance and sale of the Securities to the Purchaser as
contemplated  hereby  are  exempt  from  the  registration  requirements  of the
Securities Act of 1933, as amended (the "Securities  Act").  Neither the Company
nor any Person  acting on its behalf  has taken or is, to the  knowledge  of the
Company,  contemplating  taking any action  which could  subject  the  offering,
issuance  or sale of the  Securities  to the  registration  requirements  of the
Securities  Act including  soliciting any offer to buy or sell the Securities by
means of any form of general solicitation or advertising.

                  (h)      Disclosure. The Company understands and confirms that
the  Purchasers  shall  be  relying  on the  representations  set  forth  in the
Transaction  Documents in effecting  transactions  in securities of the Company.
All disclosure, including, without limitation, that set forth in the Transaction
Documents and the Schedules to this Agreement (which are  incorporated  into and
made a part  of  this  Agreement),  provided  to the  Purchasers  regarding  the
Company,  its  business and the  transactions  contemplated  by the  Transaction
Documents,  furnished by or on behalf of the Company are true and correct and do
not  contain  any  untrue  statement  of a  material  fact or omit to state  any
material fact necessary in order to make the statements made herein and therein,
in light of the circumstances under which they were made, not misleading.

                  (i)      Financial Information.  The Company has furnished the
Purchaser with the Company's  financial  statements and other  disclosures about
the Company in its public  documents as filed with the  Securities  and Exchange
Commission.  Such  information  is materially  true and correct and includes all
information required to be filed with the SEC.

                                 Page 14 of 200
<PAGE>

                  (j)      Insurance.   The  Company   carries   insurance  with
financially  sound and reputable  insurance  companies or associations,  in such
amounts and covering  such risks as are adequate and  customary for the type and
scope of its property and  business,  but in any event in amounts  sufficient to
prevent the Company from becoming a co-insurer.

                  (k)      No Broker.  The Company has no contract,  arrangement
or understanding  with any broker,  finder,  agent,  financial  advisor or other
intermediary with respect to the transactions contemplated by this Agreement.

                  (l)      Books and  Records.  The books of  account,  ledgers,
order books,  records and  documents of the Company  accurately  and  completely
reflect all material  information  relating to the business of the Company,  the
nature, acquisition,  maintenance,  location and collection of the assets of the
Company,  and the nature of all  transactions  giving rise to the obligations or
accounts receivable of the Company.

                  (m)      Environmental   Matters.   The   Company  is  not  in
violation  of  any  applicable  statute,  law  or  regulation  relating  to  the
environment or occupational safety and health, and, to the best knowledge of the
Company,  no material  expenditures will be required in order to comply with any
such statute, law or regulation.

                  (n)      Issuance   Taxes.   All  taxes   imposed  by  law  in
connection  with the  issuance,  sale and delivery of the Shares have been fully
paid, and all laws imposing such taxes have been fully complied with.

         2.2      Representations  and  Warranties of the  Purchaser.  Purchaser
hereby represents and warrants to the Company as follows:

                  (a)      Organization;  Authority. Purchaser has the requisite
power  and  authority  to  enter  into  and  to  consummate   the   transactions
contemplated  by the  Transaction  Documents  and  otherwise  to  carry  out its
obligations  thereunder.  The purchase by Purchaser of shares of Preferred Stock
hereunder  has been  duly  authorized  by all  necessary  action  on the part of
Purchaser.  This  Agreement  has been  duly  executed  by  Purchaser  and,  when
delivered (or filed, as the case may be) in accordance with the terms hereof and
thereof,  will  constitute  valid  and  binding  obligations  of  the  Purchaser
enforceable against the Purchaser in accordance with their terms.

                  (b)      Investment  Intent.  Purchaser is acquiring shares of
Preferred  Stock as principal for its own account for  investment  purposes only
and not with a view to or for  distributing  or  reselling  any such  shares  of
Preferred  Stock.  Purchaser is acquiring shares of Preferred Stock hereunder in
the ordinary  course of its business.  Purchaser  does not have any agreement or
understanding, directly or indirectly, with any person to distribute such Shares
of Preferred Stock.

                  (c)      Purchaser  Status.  At the time Purchaser was offered
shares of Preferred  Stock, it was, and at the date hereof it is, an "accredited
investor" as defined in Rule 501(a) under the Securities Act.  Purchaser has not
been formed solely for the purpose of acquiring the Securities.

                                 Page 15 of 200
<PAGE>

                  (d)      Experience of Purchaser.  Purchaser,  either alone or
together  with its  representatives,  has  such  knowledge,  sophistication  and
experience in business and  financial  matters so as to be capable of evaluating
the merits and risks of the prospective investment in the Securities, and has so
evaluated the merits and risks of such investment.

                  (e)      Ability  of  Purchaser  to Bear  Risk of  Investment.
Purchaser is able to bear the economic risk of an  investment in the  Securities
and, at the present time, is able to afford a complete loss of such investment.

                  (f)      Access to Information. Purchaser acknowledges that it
has reviewed such information  about the Company it has deemed necessary and has
been  afforded  (i) the  opportunity  to ask  such  questions  as it has  deemed
necessary  of, and to  receive  answers  from,  representatives  of the  Company
concerning  the terms and  conditions of the offering of the  Securities and the
merits and risks of  investing  in the  Securities;  (ii) access to  information
about the Company and the Company's financial condition,  results of operations,
business,  properties,  management  and  prospects  sufficient  to  enable it to
evaluate its  investment;  and (iii) the  opportunity to obtain such  additional
information  which the Company  possesses  or can acquire  without  unreasonable
effort or expense that is necessary to make an informed investment decision with
respect to the  investment  and to verify the accuracy and  completeness  of the
information it has reviewed.  Neither such inquiries nor any other investigation
conducted by or on behalf of Purchaser or its  representatives  or counsel shall
modify,  amend or affect  Purchaser's  right to rely on the truth,  accuracy and
completeness  of  the  any of  the  Company's  disclosures  to  each  Purchaser,
including,  without limitation,  representations and warranties contained in the
Transaction Documents.

                  (g)      General  Solicitation.  Purchaser  is not  purchasing
shares of Preferred  Stock as a result of or  subsequent  to any  advertisement,
article, notice or other communication regarding the Securities published in any
newspaper,  magazine or similar media or broadcast  over  television or radio or
presented  at  any  seminar  or  any  other  general   solicitation  or  general
advertisement.

                  (h)      Reliance. Purchaser understands and acknowledges that
(i)  shares  of  preferred  stock  are  being  offered  and  sold to it  without
registration  under the  Securities  Act on the basis of an  exemption  from the
registration  provisions of the Securities Act and (ii) the availability of such
exemption,  depends in part on, and the Company  will rely upon the accuracy and
truthfulness of, the foregoing representations.

                  The Company  acknowledges  and agrees that  Purchaser does not
make or has not made any  representations  or  warranties  with  respect  to the
transactions contemplated hereby other than those specifically set forth in this
Section 2.2.

                                   ARTICLE III

                         OTHER AGREEMENTS OF THE PARTIES

         3.1      Transfer Restrictions.  (a) Securities may only be disposed of
pursuant to an effective registration statement under the Securities Act, to the
Company or pursuant  to an  available  exemption  from or in a  transaction  not
subject  to  the  registration  requirements  of  the  Securities  Act,  and  in
compliance with any applicable  federal and state securities laws. In connection
with any transfer of Securities other than pursuant to an effective registration
statement or to the Company,  except as otherwise set forth herein,  the Company
may  require  the  transferor  thereof to  provide to the  Company an opinion of
counsel  selected by the  transferor,  the form and  substance of which  opinion
shall be  reasonably  satisfactory  to the  Company,  to the  effect  that  such
transfer does not require registration of such transferred  securities under the
Securities Act.

                                 Page 16 of 200
<PAGE>

         (b)      The Purchaser agrees to the imprinting, so long as is required
by this Section 3.1(b), of the following legend on the Securities:

NEITHER THESE  SECURITIES  NOR THE  SECURITIES  INTO WHICH THESE  SECURITIES ARE
CONVERTIBLE, HAVE BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION OR
THE  SECURITIES  COMMISSION  OF ANY STATE IN  RELIANCE  UPON AN  EXEMPTION  FROM
REGISTRATION  UNDER THE  SECURITIES  ACT OF 1933,  AS AMENDED  (THE  "SECURITIES
ACT"),  AND,  ACCORDINGLY,  MAY NOT BE OFFERED  OR SOLD  EXCEPT  PURSUANT  TO AN
EFFECTIVE  REGISTRATION  STATEMENT  UNDER THE  SECURITIES  ACT OR PURSUANT TO AN
AVAILABLE  EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE  REGISTRATION
REQUIREMENTS  OF THE  SECURITIES  ACT AND IN ACCORDANCE  WITH  APPLICABLE  STATE
SECURITIES LAWS.

         3.2      Furnishing  of   Information.   As  long  as  Purchaser   owns
Securities,  the Company  covenants to provide such Purchaser (i) with quarterly
financial statements,  including year-to-date statements,  of the Company within
45 days  after the end of each  fiscal  quarter,  and (ii) an  annual  financial
statement  within  120 days  after the end of each  fiscal  year  audited  by an
accounting firm approved by the Purchasers.  All such financial statements shall
be prepared and  formatted in  accordance  with  generally  accepted  accounting
principles,  except that quarterly  financial  statements may lack footnotes and
usual year-end adjustments.

         3.3      Possible Purchase Price Per Share  Adjustment.  All agreements
between  the  Purchasers  and the  Company,  whether now  existing or  hereafter
arising  and  whether  written  or  oral,  are  hereby  limited  so  that  in no
contingency,  whether by  unilateral or mutual  mistake or otherwise,  shall the
purchase price per share of $1.60 per share of the Preferred  Stock be less than
the greater of book or market value of five shares of  Greenbriar  common stock.
If it is determined,  from any circumstance whatsoever,  that the purchase price
per  share of $1.60 per  share of the  Preferred  Stock is less than the book or
market value of five shares of Greenbriar  common stock, the number of number of
shares of Preferred  Stock held by such holder of the Preferred Stock or secured
party,  where the  Preferred  Stock is  collateral,  shall be reduced  until the
purchase price per share of Preferred Stock is equal to the book or market value
of five shares of Greenbriar  common stock.  Any holder or subsequent  holder of
the  Preferred  Stock  or any  secured  party,  where  the  Preferred  Stock  is
collateral, shall surrender such excess shares to the Company on a timely basis.
Purchasers  shall require any  subsequent  holder of the Preferred  Stock or any
secured party,  where the Preferred Stock is collateral,  to agree in writing to
be bound by the terms of this paragraph of the Agreement.  This paragraph  shall
control all agreements between the Purchasers and the Company.

                                 Page 17 of 200
<PAGE>

                                   ARTICLE IV

                                  MISCELLANEOUS

         4.1      Entire  Agreement;   Amendments.  The  Transaction  Documents,
together   with  the  Exhibits  and   Schedules   thereto   contain  the  entire
understanding  of the  parties  with  respect to the subject  matter  hereof and
supersede all prior agreements and understandings, oral or written, with respect
to such  matters,  which the  parties  acknowledge  have been  merged  into such
documents, exhibits and schedules.

         4.2      Notices.  Any and  all  notices  or  other  communications  or
deliveries  required or permitted to be provided  hereunder  shall be in writing
and  shall be deemed  given and  effective  on the  earliest  of (i) the date of
transmission,  if such notice or communication is delivered via facsimile at the
facsimile  telephone number specified in this Section prior to 4:00 p.m. (Dallas
time) on a Business Day,  (ii) the Business Day after the date of  transmission,
if such notice or  communication  is delivered  via  facsimile at the  facsimile
telephone  number specified in this Agreement later than 4:00 p.m. (Dallas time)
on any date and earlier than 11:59 p.m.  (Dallas  time) on such date,  (iii) the
Business Day  following the date of mailing,  if sent by  nationally  recognized
overnight courier service, or (iv) upon actual receipt by the party to whom such
notice is required to be given. The address for such notices and  communications
shall be as follows:

         If to the Company:        Greenbriar Corporation
                                   650 Centura Tower One
                                   14185 Dallas Parkway
                                   Dallas, Texas 75240
                                   Attn:  James R. Gilley

         With copies to:           Glast, Phillips & Murray
                                   2200 One Galleria Tower
                                   13355 Noel Road, L.B. 48
                                   Dallas, Texas 75240-6657
                                   Facsimile No.:  (972) 419-8329
                                   Attn:  Ronald L. Brown, Esq.

         If to Purchaser:          Wedgwood Partners, Ltd., Limited Partnership
                                   650 Centura Tower One
                                   14185 Dallas Parkway
                                   Dallas, Texas 75240
                                   Attn:  Gene S. Bertcher

         With copies to:           Bennett, Weston & LaJone, P.C.
                                   1750 Valley View Lane
                                   Suite 120
                                   Dallas, Texas 75234
                                   Facsimile No.:  (214) 373-6810
                                   Attn:  Mark E. Bennett, Esq.

Or such other  address as may be designated  in writing  hereafter,  in the same
manner, by such Person.

                                 Page 18 of 200
<PAGE>

         4.3      Amendments;  Waivers.  No provision of this  Agreement  may be
waived  or  amended  except in a written  instrument  signed,  in the case of an
amendment,  by the Company and the Purchaser or, in the case of a waiver, by the
party against whom  enforcement  of any such waiver is sought.  No waiver of any
default  with  respect  to any  provision,  condition  or  requirement  of  this
Agreement shall be deemed to be a continuing waiver in the future or a waiver of
any other  provision,  condition or requirement  hereof,  nor shall any delay or
omission of either  party to exercise any right  hereunder in any manner  impair
the exercise of any such right accruing to it thereafter.

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

         4.5      Successors and Assigns.  This Agreement  shall be binding upon
and inure to the  benefit of the  parties  and their  successors  and  permitted
assigns.  The Company may not assign this Agreement or any rights or obligations
hereunder  without the prior  written  consent of the  Purchaser.  Except as set
forth in Section  3.1(a),  the Purchaser may not assign this Agreement or any of
the rights or obligations hereunder without the consent of the Company.

         4.6      No Third-Party  Beneficiaries.  This Agreement is intended for
the benefit of the parties hereto and their respective  successors and permitted
assigns and is not for the benefit of, nor may any provision  hereof be enforced
by, any other Person.

         4.7      Governing  Law. All  questions  concerning  the  construction,
validity,  enforcement and interpretation of this Agreement shall be governed by
and construed and enforced in accordance  with the internal laws of the State of
Nevada, without regard to the principles of conflicts of law thereof.

         4.8      Survival.  The  representations,  warranties,  agreements  and
covenants  contained  herein  shall  survive the Closing  and the  delivery  and
conversion or exercise (as the case may be) of the Preferred Stock.

         4.9      Execution.  This  Agreement  may be  executed  in two or  more
counterparts,  all of which when taken  together shall be considered one and the
same agreement and shall become effective when  counterparts have been signed by
each party and  delivered  to the other  party,  it being  understood  that both
parties need not sign the same  counterpart.  In the event that any signature is
delivered by facsimile  transmission,  such  signature  shall create a valid and
binding  obligation of the party executing (or on whose behalf such signature is
executed) the same with the same force and effect as if such facsimile signature
page were an original thereof.

                                 Page 19 of 200
<PAGE>

         4.10     Severability.  In case  any one or more of the  provisions  of
this Agreement shall be invalid or  unenforceable  in any respect,  the validity
and enforceability of the remaining terms and provisions of this Agreement shall
not in any way be affecting or impaired  thereby and the parties will attempt to
agree  upon a valid  and  enforceable  provision  which  shall  be a  reasonable
substitute  therefor,  and upon so agreeing,  shall  incorporate such substitute
provision in this Agreement.

                                 Page 20 of 200
<PAGE>

                  IN WITNESS WHEREOF, the parties hereto have caused this Series
H Preferred  Stock  Purchase  Agreement to be duly executed by their  respective
authorized signatories as of the date first indicated above.

                                          GREENBRIAR CORPORATION

                                          By: /s/ Oscar W. Smith
                                             -----------------------------------

                                                  Oscar W. Smith, Vice President

                                          WEDGWOOD PARTNERS, LTD.
                                          LIMITED PARTNERSHIP

                                          BY GBR, LLC, ITS GENERAL
                                          PARTNER

                                                 BY ITS SOLE MEMBER & MANAGER:

                                                 Greenbriar Acquisition
                                                 Corporation

                                                 By: /s/ Gene S. Bertcher
                                                    ----------------------------

                                                 Name: Gene S. Bertcher

                                                 Title: Executive Vice-President

                                 Page 21 of 200

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