EXHIBIT 10.33
                              EMPLOYMENT AGREEMENT


     THIS EMPLOYMENT  AGREEMENT (this  "Agreement") is entered into as of May 1,
1996, by and between PRIME MEDICAL SERVICES,  INC., a Delaware  Corporation (the
"Company"),  and JOSEPH JENKINS,  M.D.,  J.D., a resident of North Carolina (the
"Executive").

                                    RECITALS

     The Company is engaged in the business of (i)  developing  new  lithotripsy
clinics,  (ii) owning and operating  lithotripsy  clinics,  and (iii) serving as
general  partner  and  management  agent  for  operational  lithotripsy  clinics
throughout the United States. The Executive is experienced in, and knowledgeable
concerning,  certain  aspects of the business of the Company.  The Executive has
heretofore  been employed by a predecessor  to the Company,  and the Company and
the  Executive  desire  to  continue  the  employment  of the  Executive  as the
President of the Company on the terms set forth in this Agreement.

     NOW  THEREFORE,  for and in  consideration  of the  premises and the mutual
covenants and agreements provided for herein, the parties agree as follows:

     1. Employment and Duties.  The Company hereby employs the Executive  during
the term of this Agreement, and the Executive hereby accepts such employment, as
the President  and Chief  Executive  Officer of the Company.  During the term of
this  Agreement,  the  Executive  shall  provide  to the  Company  the  services
consistent with that of the President and Chief Executive Officer of the Company
as set forth in the By-Laws of the Company,  and as  determined  by the Board of
Directors  of the  Company.  Notwithstanding  the  foregoing,  without the prior
consent  of the  Executive,  his duties  hereunder  may not be (i)  expanded  or
modified  substantially from those set forth in this Section or (ii) modified or
expanded  in any way that would  require him to relocate  his  residence  from a
reasonable  automobile  commuting distance from Fayetteville,  North Carolina or
make it  impractical  for him to continue to reside there or cause him to reside
away from there for  extended  periods of time,  unless  the  Executive  and the
Chairman of the Board of Directors of the Company mutually agree otherwise.

     2. Duration and Termination.

     a.  Duration.  The initial term of this  Agreement  shall begin on the date
hereof and end on April 30, 1998,  unless this  Agreement  is sooner  terminated
pursuant to Section 2.b. hereof or the term is extended pursuant to this Section
2.a.  Unless the Company  provides  written notice to the Executive on or before
October 31, 1997, or on or before  October 31 of each year  thereafter,  that it
does not desire to extend the term of this Agreement, the term of this Agreement
shall be extended automatically for an additional one-year period. References in
this  Agreement  to the "term" of this  Agreement  mean the initial term and any
extensions thereof as provided pursuant to this Section 2.a.

     b.  Termination.  This  Agreement  may be  terminated  during  its  term as
follows:


<PAGE>



     (i) Upon Death or Disability.  This Agreement shall terminate automatically
upon the death or disability of the Executive.  For purposes of this  Agreement,
"disability"  means the  Executive's  inability  to  substantially  perform  the
services set forth in Section 2 hereto as a result of his physical incapacity or
mental incompetence, or both, provided such inability has continued for a period
of not less than six consecutive  months or for shorter periods  aggregating six
consecutive  months during any  consecutive  twelve-month  period,  and which in
either  case must be  evidenced  by a  written  certification  furnished  to the
Company and to the Executive by a physician selected by agreement of the Company
and the Executive.

     (ii) By the  Executive.  The Executive may terminate  this Agreement at any
time during its term by providing  sixty days' prior written notice to the Board
of Directors of the Company of such termination.

     (iii) By Written Agreement of Parties.  This Agreement may be terminated at
any time by the mutual written agreement of the Company and the Executive.

     (iv) By the Company "for Cause".  The Company may terminate  this Agreement
at any time during its term "for cause" by providing  sixty days' prior  written
notice to the Executive,  which notice must specifically describe the conduct of
the Executive providing the Company with cause to terminate this Agreement.  For
purposes  of  this  Agreement,  "for  cause"  means  (i) the  conviction  of the
Executive  of a felony  which  renders  him unable to provide to the Company the
services set forth in Section 2 hereto;  (ii) the commission by the Executive of
an act of fraud,  misappropriation  of funds or  embezzlement in connection with
his  employment  hereunder;  (iii) the  intentional  failure of the Executive to
perform  his  duties  hereunder;  or (iv) the  breach  by the  Executive  of any
material  provision of the  Agreement  that is not remedied  within  thirty days
after the Company provides written notice thereof to the Executive.

     (v) By the Company Other Than "for Cause".  The Company may terminate  this
Agreement  at any time during its term for any reason other than "for cause" (as
defined in Section  2(b)(iv) above) by providing sixty days prior written notice
to the Executive; provided that if the Company terminates the Agreement pursuant
to this Section  2(b)(v),  the Company shall continue to pay compensation to the
Executive  for the  remainder  of the term at the  highest  annual  rate of cash
salary in effect  under  Section  3 hereof at any time  during  the term of this
Agreement.  Such annual  payments  shall be made in equal monthly  installments,
each payable in arrears to the  Executive by the tenth day of each month for the
remainder of the term of the Agreement.  In the event of a termination  pursuant
to this Section 2(b)(v),  any  NonCompetition  Agreement between the Company and
the Executive shall continue in all respects,  except that the territory covered
by any NonCompetition  Agreement shall be limited to the markets serviced by the
Company and Lithotripters at the time of termination.

                                        2

<PAGE>




     3. Annual Compensation. Commencing on the date hereof and continuing during
the term of this Agreement,  the Company shall pay to the Executive compensation
at the rate of $325,000 per annum,  payable in twelve equal monthly installments
of  $27,083.33,  each  payable in arrears to the  Executive by the tenth of each
month. The rate of annual  compensation  provided for herein shall be subject to
review and increase in accordance  with the normal  salary  review  policies and
procedures of the Company applicable to its executive  officers,  but nothing in
this  sentence  shall be  interpreted  as  requiring  the  Company  to  increase
compensation  of the  Executive in any year. In no event shall the annual salary
payable hereunder be less than $325,000.

     4. Bonus Arrangement.  In addition to annual  compensation  provided for in
Section 3 hereof,  the Company may award to the  Executive  performance  bonuses
based upon the performance of the Company and the Executive,  as determined from
time to time by the Board of  Directors  of the  Company,  but nothing  hteherin
shall be  interpreted  as obligating the Company to pay a bonus to the Executive
in any year, and the decision to pay or not to pay a bonus for any year shall be
discretionary with the Company.

     5.  Executive  Benefits.  Effective as of the date of this  Agreement,  the
Executive  shall be entitled to participate  in benefit  programs of the Company
that generally are made available to its executive  officers,  as in effect from
time to time,  including without limitation  medical insurance,  life insurance,
disability  income  plan,  retirement  benefits  pursuant  to a  formal  plan or
otherwise,  and vacation  policies (four week minimum).  Benefits payable by the
Company shall include, without limitation, the following:

     (i) Continuation of Executive Club Membership (including monthly dues);

     (ii) All expenses  associated with the provision,  maintenance and use of a
cellular car phone;

     (iii)  Payment of  professional  legal and  medical  magazine  and  journal
subscriptions;

     (iv)  Continuation  of existing  airline travel clubs (e.g.  U.S. Air Club,
Delta Crown Room, Admiral Club, etc.) and benefits;

     (v) Payment of medical malpractice premiums;

     (vi) Payment of medical licenses and medical and DEA registrations;

     (vii) Payment for membership and dues in professional  medical associations
and  societies,   including,   without  limitation,   ALS,  AUA,  AMA,  Carolina
Urological,  North Carolina Urological, North Carolina Medical Society, American
College of Surgeons,  and Southeastern  Section of AUA, and payment of all costs
associated with attending any meetings of the above; and


                                        3

<PAGE>



     (viii)  Payment  of  all  costs  of  registration  and  attendance  to  any
continuing medical education  meetings,  subject to prior approval of attendance
at any such meetings by the Chairman of the Board of Directors of the Company.

     6. Reimbursement of Expenses. The Company shall reimburse the Executive, in
accordance  with the general  policies and practices of the Company as in effect
from time to time, for  out-of-pocket  expenses incurred by the Executive in the
performance of his duties hereunder.

     7. Notices. Any notice required or permitted to be given under the terms of
this Agreement shall be in writing and either hand delivered,  sent by facsimile
transmission or sent by nationally-recognized air courier, as follows:

                  If to the Company:

                  Prime Medical Services, Inc.
                  Kenneth S. Shifrin
                  1301 Capital of Texas Hwy., Ste. C-300, Austin, TX 78746
                  Facsimile Number: (512) 314-4398

                  If to the Executive:

                  Joseph Jenkins, M.D., J.D.
                  Joseph Jenkins, M.D.
                  2008 Litho Place, Fayetteville, NC 28304
                  Facsimile Number: (910) 323-9857

or to such other  address as either party may furnish to the other in accordance
with this  Section 8. Any such  notice  shall be deemed to have been given as of
the date hand  delivered  or sent by  facsimile or one day after it is deposited
for delivery with a  nationally-recognized  air courier (properly  addressed and
with charges prepaid).

     8.  Assignment.  This Agreement is personal to each of the parties  hereto,
and  neither  party  may  assign  nor  delegate  any of his  or  its  rights  or
obligations  hereunder  without first obtaining the written consent of the other
party.

     9. Burden and Benefit. This Agreement shall be binding upon and shall inure
to the benefit of the Company and the Executive and their  respective  permitted
successors and assigns. As used herein, the term "successors" shall be deemed to
refer with equal force and effect to any  corporate  or other  successor  of the
Company which shall acquire, directly or indirectly,  by merger,  consolidation,
purchase or otherwise all or subsequently  all of the assets or capital stock of
the Company.

     10. Entire  Agreement.  This  Agreement  contains the entire  agreement and
understanding by and between the Company and the Executive with respect to the

                                        4

<PAGE>



employment of the Executive by the Company.  This Agreement  supersedes all
prior undertakings and agreements, written or oral, as may have existed prior to
the date  hereof  between  the Company  and the  Executive  with  respect to the
employment of the Executive by the Company.

     11. Amendment; Waiver. No change or modification of this Agreement shall be
valid or binding unless in writing and signed by the party intended to be bound.
No waiver of any  provision of this  Agreement  shall be valid unless in writing
and  signed by the party  against  whom the waiver is sought to be  enforced.  A
valid waiver of any provision of this Agreement shall be limited to the instance
recited in such writing and, unless  otherwise  expressly  stated,  shall not be
effective as a continuing waiver or repeal of such provision.

     12.  Severability.  In the event that any provision of this Agreement shall
be deemed to be invalid or unenforceable for any reason whatsoever, it is agreed
that such invalidity or unenforceability shall not affect any other provision of
this Agreement;  the remaining terms,  covenants,  restrictions or provisions in
this Agreement shall remain in full force and effect; and any court of competent
jurisdictions  may so modify the  objectionable  provision  as to make it valid,
reasonable and enforceable.

     13.  Governing  Law. This  Agreement  shall be governed by and construed in
accordance with the laws of the State of North Carolina  applicable to contracts
made and to be wholly performed within the State.

     14.   Counterparts.   This  Agreement  may  be  executed  in  one  or  more
counterparts,  each of  which  shall be  deemed  an  original,  but all of which
together shall constitute one and the same instrument.


     IN WITNESS  WHEREOF,  the parties  hereto have executed and delivered  this
Agreement as of the day and year first above written.

                                             COMPANY:

                                             PRIME MEDICAL SERVICES, INC.
                                             a Delaware corporation

                                             By: ____________________________

                                             Name: Kenneth S. Shifrin

                                             Title: Chairman of the Board

                                             EXECUTIVE:

                                             ____________________________(SEAL)
                                             JOSEPH JENKINS, M.D., J.D.

                                        5

<PAGE>