Document:

Exhibit 10.2

                          LOAN MODIFICATION AGREEMENT

     THIS LOAN MODIFICATION  AGREEMENT (this  "Modification  Agreement") is made
and entered into as of the 4th day of March,  2002 (the "Effective Date") by and
among HEARTGEN  CENTERS,  INC. (the  "Company") RLA 1993 TRUST ("RLA"),  RICHARD
ABRAHAMS ("Abrahams") and VASOMEDICAL, INC., a Delaware corporation ("Vaso").

                                    Recitals
                                    --------

     1. The Company, RLA, and Abrahams are parties to a certain Credit Agreement
dated as of  January  11,  2002,  as amended  by the First  Amendment  to Credit
Agreement dated February 22, 2002 (the "Agreement").

     2. This Modification Agreement is being executed to evidence the assignment
and  transfer  by RLA to Vaso of a portion of RLA's  commitment  to make  Center
Financing  Advances and its corresponding  rights,  title and interest in and to
the Agreement,  and Vaso's assumption of such commitment,  and to effect certain
amendments  of  the  terms  of the  Agreement,  the  Loan  Documents  and  other
agreements between RLA and the Company.

                                   Agreement
                                   ---------

     NOW THEREFORE, the Company, RLA, Abrahams, and Vaso agree as follows:

     1.  DEFINITIONS.  Terms  used in this  Modification  Agreement  with  their
initial  letters  capitalized  and which are not defined  herein  shall have the
meanings  ascribed  to them in the  Agreement,  as amended by this  Modification
Agreement.

     2. ASSIGNMENT AND TRANSFER BY RLA.

     a.  Effective  as of March 1, 2002,  RLA rescinds the notice given prior to
that date, of RLA's  termination of its commitment to make the Center  Financing
Advances  in the  principal  sum of  $500,000.00  that are to be made by  Lender
pursuant to Section 2.02(c) of the Agreement  during the second calendar quarter
of 2002, and hereby reaffirms said commitment,  and agrees that on the Effective
Date and at the time of execution of this Agreement (but before giving effect to
Section 2.b.  below) such  commitment is binding upon RLA as though no notice of
termination had been given.

     b.  Effective as of the  Effective  Date,  RLA  irrevocably  transfers  and
assigns to Vaso,  without  recourse to RLA, all of RLA's  rights,  interests and
obligations  under the Agreement in respect of the Center Financing  Advances in
the  principal  sum of  $500,000.00  that are to be made by Lender  pursuant  to
Section 2.02(c) of the Agreement during the second calendar quarter of 2002 (the
"Assigned  Interest"),  and Vaso  irrevocably  accepts and assumes the  Assigned
Interest  from  RLA,  without  recourse  to  RLA,  and  agrees  to  perform  the
obligations of RLA in respect of such Center Financing Advances.  RLA represents
and warrants to Vaso that RLA is the legal and beneficial  owner of the Assigned

<PAGE>

Interest and that such interest is free and clear of any lien or adverse  claim.
RLA makes no  representation  or  warranty  and assumes no  responsibility  with
respect  to the  enforceability,  sufficiency  or  value of the  Agreement,  any
Collateral  thereunder or any of the Loan Documents  furnished pursuant thereto,
or the financial  condition of the Company or the  performance  or observance by
the Company of any of its  obligations  under the  Agreement  or any of the Loan
Documents.

     c. From and  after the  Effective  Date,  (i) Vaso  shall be a party to the
Agreement as amended by this  Modification  Agreement  and shall have the rights
and obligations of a Lender thereunder in respect of the Assigned Interest,  and
(ii) RLA shall relinquish its rights and be released from its obligations  under
the Agreement in respect of and only to the extent of the Assigned Interest.

     3.  AMENDMENT  OF  AGREEMENT.  Effective  as of  the  Effective  Date,  the
Agreement is amended as follows:

     a. The following new definitions are added to Section 1.02 of the Agreement

     "Unsecured Center Financing Advances" has the meaning ascribed to that term
     in Section 2.02(c) of this Agreement.

     "Unsecured  Obligations"  means the Unsecured Center Financing Advances and
     all renewals and extensions thereof, all interest accruing on the Unsecured
     Center  Financing  Advances,   and  all  costs,   expenses  and  reasonable
     attorneys'  fees  incurred  by  Lender  in the  enforcement  or  collection
     thereof.

     "Vaso" means Vasomedical, Inc., a Delaware corporation.

     b. The  definition  of the term  "Majority  Lender" in Section  1.02 of the
Agreement is hereby amended and restated to read as follows:  "Majority  Lender"
means the Initial Lender.

     c. The definition of the term  "Revolving  Loan Borrowing  Base" in Section
1.02 of the Agreement is hereby amended and restated to read as follows:

     "Revolving Loan Borrowing Base" means, at any date a determination  thereof
     is made,  an amount  equal to:  (a) from the  Initial  Funding  Date to and
     including September 30, 2002, eighty percent (80%) of the Eligible Accounts
     as determined by the most recent  Borrowing Base  Certificate  delivered to
     the Lender, minus the aggregate unpaid balance of principal and interest of
     the Center  Financing  Advances  (excluding the Unsecured  Center Financing
     Advances and all accrued unpaid interest  thereon);  and (b) from and after
     October  1,  2002,  seventy  percent  (70%)  of the  Eligible  Accounts  as

                                       2
<PAGE>

     determined by the most recent Borrowing Base  Certificate  delivered to the
     Lender, minus the aggregate unpaid balance of principal and interest of the
     Center  Financing  Advances   (excluding  the  Unsecured  Center  Financing
     Advances and all accrued unpaid interest thereon).

     d.  Section  2.02(c) of the  Agreement  is amended and  restated to read as
follows:

     (c) Disbursement of Proceeds.  Each Center Financing  Advance to be made by
     the  Initial  Lender  shall  be in  the  principal  sum of  not  less  than
     $225,000.00 or more than $300,000.00.  Such Center Financing Advances shall
     be disbursed to the Company as follows:  (i) the sum of  $450,000.00 on the
     Initial Funding Date; (ii) the sum of $250,000.00 during the third calendar
     quarter of 2002;  (iii) the sum of $250,000.00  during the fourth  calendar
     quarter of 2002;  (iv) the sum of  $250,000.00  during  the first  calendar
     quarter of 2003; and (v) the sum of $250,000.00  during the second calendar
     quarter  of 2003;  provided  that,  any of the  Center  Financing  Advances
     scheduled to be made after June 30, 2002, may be increased,  at the request
     of the Company, by up to $50,000.00, so long as the aggregate amount of all
     such  increases  does not exceed  $50,000.00,  and so long as the aggregate
     amount of all Center  Financing  Advances made by the Initial Lender and by
     Vaso does not exceed  $2,000,000.00.  Each such  Center  Financing  Advance
     shall be disbursed by the Initial  Lender not later than the third business
     day  following  the date in the  relevant  calendar  quarter  on which  the
     Company  delivers to Lender the first Financial  Statements  required under
     Section 5.02(b)(2) to be delivered in such calendar quarter,  together with
     an  Officer's  Certificate  setting  forth  the  Company's  EBITDA  for the
     preceding  calendar  quarter.  The Initial Lender shall not be obligated to
     make any Center Financing  Advance after April 1, 2002, if at the time such
     disbursement   is  scheduled  to  be  made,  the  Revolving  Loan  Increase
     Conditions or the Center  Financing  Conditions are not satisfied;  and the
     Initial Lender shall not be obligated to make any Center Financing  Advance
     on or  after  the  Initial  Funding  Date,  if  after  the  making  of such
     disbursement,  the outstanding  principal  balance of the Center  Financing
     Loan (exclusive of the Unsecured  Center  Financing  Advances) would exceed
     the Center  Financing  Borrowing  Base.  If at any date a Center  Financing
     Advance is scheduled  to be made,  the Initial  Lender is not  obligated to
     make a Center Financing  Advance due to a failure by the Company to satisfy
     any of the conditions stated in the preceding sentence, the Company, at its
     option,  may elect to take and if so elected the Initial  Lender shall make
     such  Center  Financing  Advance  on  the  first  day of  the  next  or any
     subsequent  calendar month;  provided that (i) the aggregate  amount of all
     Center  Financing  Advances made as of the end of any calendar  month shall
     not exceed the aggregate sum permitted to have been disbursed by the Lender
     at such time pursuant to this Section  2.02(c);  (ii) as of such date,  the
     Company has satisfied  the  applicable  conditions  stated in the preceding
     sentence,  and (iii) the Initial  Lender shall not be obligated to make any

                                       3
<PAGE>

     Center  Financing  Advance  after  June  30,  2003.   Notwithstanding   the
     foregoing,  if EBITDA of the Company for any fiscal  quarter  ending  after
     June 30,  2002,  is less  than  zero,  the  Initial  Lender  shall  have no
     obligation to make any Center Financing  Advance  scheduled to be disbursed
     thereafter.

          Vaso shall make Center Financing Advances to the Company in the sum of
     $500,000.00  (the  "Unsecured  Center  Financing  Advances"),  in two equal
     disbursements of $250,000.00 on or about March 5, 2002, and March 15, 2002.

          The Company, upon written notice to the Initial Lender given not fewer
     than sixty (60) days prior to the date such disbursement is to be made, may
     elect not to draw down one or both of the  final two (2)  disbursements  of
     the Center Financing Loan scheduled for calendar year 2003.

     e. Section 2.02(d) is amended and restated to read as follows:

     (d) Interest on the Center Financing Loan. The unpaid principal  balance of
     each Center Financing Advance and the Center Financing Note which evidences
     such  Center  Financing  Advance  outstanding  from time to time shall bear
     interest at the rate of eighteen percent (18%) per annum. Interest accruing
     on each Center Financing Advance shall not be compounded, but shall be paid
     in accordance with Section 2.02(e) of this Agreement.

     f.  Section  4.01 of the  Agreement  is  amended  and  restated  to read as
follows:

     Section  4.01.  Collateral  for the  Obligations.  Until paid in full,  the
     Obligations,  other than the Unsecured  Obligations,  shall be secured by a
     valid and enforceable  first priority  security interest and Lien in and to
     all Accounts of the Company now owned and existing or hereafter acquired or
     arising, and all proceeds thereof, excluding, all Excluded Accounts, and in
     all deposit accounts (as defined in the UCC) of the Company  (collectively,
     the "Collateral"),  subject only to Liens and security interests  described
     in the exceptions enumerated in subsections  5.02(a)(1) through (6) of this
     Agreement.  The security interest in the Collateral shall be granted to the
     Lender under the Security Agreement.

     g.  Section  6.03 of the  Agreement  is  amended  and  restated  to read as
follows:

     Section 6.03. Condition Subsequent.  The Lender shall have no obligation to
     make any Advance, or to make any Center Financing Advance that is scheduled
     to be made after the Initial Funding Date, unless and until the Company has
     fully performed its obligations  under and is in compliance with Sections 6
     and 7 of the Security Agreement.

                                       4
<PAGE>

     h. Section 7.02 of the Agreement is amended and restated in its entirety to
read as follows:

     Section 7.02. Effect of Event of Default. If any Event of Default described
     in Section 7.01(b) of this Agreement  shall occur,  maturity of each of the
     Loans shall  immediately be accelerated and each of the Notes and the Loans
     evidenced  thereby,  and  all  other  indebtedness  and any  other  payment
     Obligations of the Company to the Lender shall become  immediately  due and
     payable,  and the  obligation  of the Lender to make any  Advance or Center
     Financing  Advance shall immediately  terminate,  all without notice of any
     kind. If any Event of Default  described in Section  7.01(a) shall occur in
     respect of the Unsecured  Center  Financing  Advances,  Vaso may accelerate
     payment of the Unsecured  Center  Financing  Advances and declare the Notes
     evidencing the Unsecured Center Financing  Advances and all other Unsecured
     Obligations  for payment due and  payable,  whereupon  the maturity of such
     Unsecured Center  Financing  Advances shall be accelerated and each of said
     Notes and the Unsecured Center Financing Advances  evidenced  thereby,  and
     all other Unsecured  Obligations  for payment shall become  immediately due
     and  payable  and the  obligation  of Vaso to  make  any  Unsecured  Center
     Financing Advances shall immediately  terminate,  all without notice of any
     kind.  When any  Event of  Default  has  occurred  and is  continuing,  the
     Majority  Lender may accelerate  payment of the Loans and declare the Notes
     and all other payment  Obligations due and payable,  whereupon  maturity of
     each of the Loans shall be accelerated  and each of the Notes and the Loans
     evidenced  thereby,   and  all  other  payment   Obligations  shall  become
     immediately  due and payable and the  obligation  of the Lender to make any
     Advance  or Center  Financing  Advance  shall  immediately  terminate,  all
     without  notice of any kind. The Lender or such other holder shall promptly
     advise the Company of any such declaration,  but failure to do so shall not
     impair the effect of such  declaration.  Each  Lender  shall be entitled to
     enforce only the Notes and other  Obligations that are owed to such Lender.
     Notwithstanding  the provisions of Article II, the Initial Lender (which is
     also the Secured Party under the Security  Agreement)  shall be entitled to
     apply all  collections of Collateral so as to satisfy first all Obligations
     hereunder other than Unsecured  Obligations before any such collections are
     used to satisfy  any  Unsecured  Obligations.  The  remedies  of the Lender
     specified  in this  Agreement  or in any other Loan  Document  shall not be
     exclusive,  and the Lender may avail itself of any other remedies  provided
     by law as well as any equitable remedies available to the Lender.

     i. The second  sentence  of Section  8.01 of the  Agreement  is amended and
restated to read as follows:

     No amendment,  modification or waiver of, or consent with respect to any of
     the  provisions of this  Agreement or the other Loan Documents or otherwise
     of the Obligations shall be effective unless such amendment,  modification,
     waiver or consent is in writing and signed by the Majority  Lender;  except

                                       5
<PAGE>

     that Vaso may waive any Event of Default  described  in Section  7.01(a) of
     this Agreement in respect of the Unsecured Center Financing  Advances,  and
     such waiver shall be effective if it is in writing and signed by Vaso,  and
     shall be  binding  upon the  Majority  Lender  regardless  of  whether  the
     Majority Lender has consented thereto or signed such waiver.

     j.  Section  8.02 of the  Agreement  is  amended  and  restated  to read as
follows:

     Section  8.02.  Notices.  Any notice  given  under or with  respect to this
     Agreement  to the  Company  or the  Lender  shall  be in  writing  and,  if
     delivered by hand or sent by overnight courier service,  shall be deemed to
     have been given when delivered, and if mailed, shall be deemed to have been
     given five (5) days  after the date when sent by  registered  or  certified
     mail,  postage  prepaid,  and addressed to the Company or the Lender at its
     address shown below, and if given by telecopy, when sent by telecopy to the
     number  shown below,  or at such other  address or number as any such party
     may,  by  written  notice  to the  other  party  to  this  Agreement,  have
     designated as its address for such purpose.  The addresses  referred to are
     as follows:

     The Company:       HeartGen Centers, Inc.
                        10304 North Hayden Road, Suite 3
                        Scottsdale, Arizona 85258
                        Attn:  President
                        Facsimile:  (480) 368-9617

With a copy to:         BAKER & DANIELS
                        600 East 96th Street, Suite 600
                        Indianapolis, IN  46240
                        Attn:  Donald P. Bennett
                        Facsimile: (317) 569-4800

The Initial Lender
 and Abrahams:          Richard Abrahams
                        1725 Lilly Court
                        Highland Park, IL  60035
                        Facsimile:  (847) 579-1302

With a copy to:         Richard Abrahams
                        c/o Kingsport Capital Partners
                        95 Revere Drive, Suite F
                        Northbrook, IL  60062
                        Facsimile:  (847) 559-5807

                                       6
<PAGE>

And with a copy to:     NEAL, GERBER & EISENBERG
                        Two North LaSalle Street
                        Chicago, IL  60602
                        Attn:  Scott Bakal
                        Facsimile: (312) 269-1747

To Vaso:                Vasomedical, Inc.
                        180 Linden Avenue
                        Westbury, New York 11591
                        Attn:  Joe Giacalone, CFO
                        Facsimile:_(516) 997-2298

     k.  Schedule  2.03 to the  Agreement is deleted and replaced  with Schedule
2.03 attached to this Modification Agreement.

     4. MODIFICATION OF OTHER LOAN DOCUMENTS.

     a. It is the intent of the  parties  that the  Unsecured  Center  Financing
Advances  to be made by Vaso  pursuant  to the  Agreement,  as  amended  by this
Modification  Agreement,  and the  other  Unsecured  Obligations,  shall  not be
secured by the security  interests granted to RLA under the Security  Agreement.
Therefore,  (i) clause (1) of the definition of the term  "Indebtedness"  in the
Security  Agreement is amended to read as follows:  "all  Obligations  of Debtor
under the Credit Agreement or any of the Loan Documents, excluding the Unsecured
Obligations;  and"; and (ii) notwithstanding the provisions of section 13 of the
Security  Agreement,  the Secured  Party shall not hold the  security  interests
granted thereunder as agent for or on behalf of Vaso.

     b. The second sentence of Section 7 of the Security Agreement is amended by
replacing the phrase "sixty (60) days  following the Initial  Funding Date" with
the phrase "ninety (90) days following the Initial Funding Date."

     c. The execution and delivery by the Company and First Union  National Bank
of control  agreements  covering the Deposit  Accounts held by that bank in form
and substance as Exhibit "C" attached hereto shall constitute  compliance by the
Company with Section 7 of the Security  Agreement  insofar as it pertains to the
Deposit  Accounts held by First Union  National Bank, and the notice in the form
attached  thereto  to as  Exhibit  A shall  constitute  a "Notice  of  Exclusive
Control" as such term is used in the Security Agreement.

     d.  Schedule I to the  Security  Agreement  is deleted  and  replaced  with
Schedule I attached to this Modification Agreement.  RLA hereby waives any Event

                                       7
<PAGE>

of Default or Unmatured  Event of Default  that may have  occurred by reason the
failure to list on Schedule I to the Security Agreement, as of the Closing Date,
the Deposit Accounts held by First Union National Bank.

     e. All references to the Agreement in the other Loan  Documents  shall mean
the Agreement,  as modified and amended by this Modification Agreement and as it
may  be  further  amended,  modified,  extended,  renewed,  supplemented  and/or
restated from time to time and at any time.  The other Loan Documents are hereby
modified  and amended to the extent  necessary  to conform  them to, or to cause
them to  accurately  reflect,  the terms of the  Agreement,  as modified by this
Modification Agreement.

     5. WARRANTS AND SUBORDINATED SECURITY INTERESTS.

     a. The Company  previously has issued to RLA a warrant to purchase  289,429
shares of the common  stock of the  Company  (the "RLA  Warrant").  To correct a
scrivener's error in the RLA Warrant,  effective as of January 11, 2002, the RLA
Warrant is amended by changing  phrase "RSA 1993 Trust" to "RLA 1993 Trust" each
time it appears therein.

     b. In  connection  with the RLA  Warrant,  the  Company  has  executed  and
delivered to RLA a Subordinated  Security Agreement dated as of January 11, 2002
(the "RLA Security  Agreement") to secure  certain of the Company's  obligations
thereunder.  Effective as of the Effective  Date, the RLA Security  Agreement is
amended as follows:

     i.   The  second  sentence  of the third  paragraph  is  amended to read as
          follows:  "As used  herein,  the  term  'Obligations'  shall  mean the
          Debtor's obligations to repurchase the Warrant pursuant to the term of
          Section 8 thereof;  provided that the Obligations secured hereby shall
          not in any event exceed the sum of $1,375,000.00."

     ii.  Section 7 is amended and restated in its entirety to read as follows:

          Section  7.  Control  Agreements.  Pursuant  to the  Primary  Security
          Agreement,  Debtor and the Initial  Lender have entered and will enter
          into  certain  control  agreements  with  the  financial  institutions
          holding  the  Deposit  Accounts  in  order  to  perfect  the  security
          interests in the Deposit  Accounts  created under the Primary Security
          Agreement.  Upon  satisfaction  and payment in full of the obligations
          and  indebtedness  secured  by the  Primary  Security  Agreement,  and
          provided that the  Obligations  under this Security  Agreement  remain
          outstanding,  Debtor,  Secured Party (or a collateral agent acting for
          the benefit of Secured  Party and all other  secured  parties  holding

                                       8
<PAGE>

          security  interests  that are of  equal  rank  and  priority  with the
          security interest granted hereunder; herein, a "Collateral Agent") and
          the  appropriate  financial  institution(s)  shall enter into  control
          agreements (a)  substantially in the form of Exhibit A attached to the
          Primary  Security  Agreement with respect to each Deposit Account that
          is intended to receive  deposits of payments of  Restricted  Accounts;
          and (b) substantially in the same forms as those entered into pursuant
          to the  Primary  Security  Agreement,  with  respect  to each  Deposit
          Account  that is intended to receive  deposits of payments of Accounts
          other than  Restricted  Accounts.  Secured  Party  agrees that Secured
          Party will not give (and will not direct any Collateral Agent to give)
          Account  Directions  (as defined in such  control  agreements)  except
          after giving a Notice of Exclusive  Control  pursuant to Section 10 of
          this Security Agreement.  Secured Party agrees that if at the time the
          Obligations  are fully paid and  satisfied,  the  Collateral  Agent is
          acting only as agent for Secured Party,  Secured Party will direct the
          Collateral Agent to terminate the control agreements.

     iii. The second  sentence of Section 10 is amended to read as follows:  "In
          addition,  upon the occurrence of any Event of Default and at any time
          thereafter  (such Event of Default having not previously  been cured),
          Secured Party shall have all the remedies of a secured party under the
          UCC and as otherwise  provided by  applicable  law, and shall have the
          right  to give (or to  direct  its  Collateral  Agent to give ) to the
          Account Holder (as defined in Exhibits A and B attached to the Primary
          Security  Agreement)  a Notice of  Exclusive  Control (as such term is
          used in the Primary Security Agreement).

     iv.  Schedule I to the RLA Security  Agreement is deleted and replaced with
          Schedule I attached to this Modification Agreement.

     c. On the  Effective  Date,  the  Company  shall issue to Vaso a warrant to
purchase  52,620 shares of the common stock of the Company in form and substance
as Exhibit "A" to this Modification Agreement,  and shall execute and deliver to
Vaso a Subordinated Security Agreement in form and substance as Exhibit "B" (the
"Vaso Security Agreement").

                                       9
<PAGE>

     d. RLA and Vaso hereby  agree that  notwithstanding  the order of creation,
attachment  or  perfection  of the security  interests  granted to each of them,
respectively,  under the RLA Security Agreement and the Vaso Security Agreement,
the method of  perfection  thereof,  or the time or order of filing of financing
statements with respect thereto, such security interests shall be pari passu and
of equal rank and priority.

     6.  PRIOR  AGREEMENTS.  The  Agreement,  as  amended  by this  Modification
Agreement,  supersedes all previous agreements and commitments made or issued by
the Lender with respect to the Loans and all other subjects of the Agreement, as
amended by this Modification Agreement,  including, without limitation, any oral
or written  proposals or  commitments  which may have been made or issued by the
Lender.

     7. BINDING ON SUCCESSORS AND ASSIGNS.  All the terms and provisions of this
Modification  Agreement  shall be binding  upon and inure to the  benefit of the
parties hereto, their respective successors,  assigns and legal representatives.
Whenever in this  Modification  Agreement any of the parties  hereto is referred
to, such reference shall be deemed to include the successors and assigns of such
party.

     8.  REAFFIRMATION.  Except as  expressly  amended  by or  pursuant  to this
Modification Agreement,  all of the terms and conditions of the Agreement,  each
of the other Loan Documents, the RLA Warrant, and the RLA Security Agreement and
remain unmodified and in full force and effect.

     9.  CAPTIONS/COUNTERPARTS.  Section  captions  used  in  this  Modification
Agreement are for convenience only and shall not affect the construction of this
Modification Agreement.  This Modification Agreement may be executed by original
or facsimile  signatures  (which shall be binding and enforceable the same as if
original),  in two or more  counterparts,  each of  which  shall  constitute  an
original,  but  all of  which  when  taken  together  shall  constitute  but one
agreement.  No party  shall be bound by this  Modification  Agreement  until all
parties have so signed.

     10.  GOVERNING LAW. This  Modification  Agreement is made under and will be
governed  in all  cases  by  the  substantive  laws  of the  State  of  Indiana,
notwithstanding  the fact that Indiana  conflicts of laws,  rules or  principles
might otherwise require the substantive rules of law of another  jurisdiction to
apply.

                                       10
<PAGE>
     IN WITNESS WHEREOF, RLA, Vaso, and the Company, each by its duly authorized
officer,  and Abrahams have executed and delivered  this Agreement as of the 4th
day of March, 2002.

                                HEARTGEN CENTERS, INC.
                                By:__________________________________

                                Printed:_____________________________

                                Title:_______________________________

                                                           ("Company")

                                RLA 1993 TRUST

                                By:__________________________________
                                   Richard Abrahams, Trustee

                                                               ("RLA")

                                VASOMEDICAL, INC.

                                By:__________________________________
                                   J. Micheal Deignan, President and CEO

                                                              ("Vaso")

                                _____________________________________
                                Richard Abrahams

<PAGE>

                                   Schedule I
                                   ----------
                                Deposit Accounts

Johnson Bank
8700 N. Gainey Center Drive
Scottsdale, AZ 85258
Acc. # 6030820613 checking
Acc. # 3052925068 money market
Acc. #6207024090

Union Federal Bank
PO Box 6054
Indianapolis, IN 46206-6054
Acc. # 590160168 deposit
Acc. # 590178997 petty cash

Community Bank of Nevada
1400 S. Rainbow
Las Vegas, NV 89146
Acc. # 0102024464 deposit
Acc. # 0102024456 petty cash

First Union National Bank
---------------------
Atlanta, Georgia ________
Acc. #2000010495852 deposit
Acc. #2000010495865 petty cash

First Union National Bank
---------------------
Tampa, Florida ________
Acc. #2000011016023 deposit
Acc. #2000011016036 petty cash

Harris Bank Elk Grove NA
500 E. Devon Avenue
Elk Grove Village, IL 60007
Acc. # 0600136530 deposit
Acc. # 0600136522 petty cash

                                       12
<PAGE>

                                 Schedule 2.03
                         Lender's Account Designations

                        Payments to the Initial Lender:

                               LaSalle Bank, N.A.
                               Chicago, Illinois
                                ABA #071 000 505
                      Credit: Richard and Louise Abrahams
                              Account # 530072028

                               Payments to Vaso:

                                   Fleet Bank
                                248 Post Avenue
                            Westbury, New York 11590
                                 ABA #021300019
                           Credit: Vasomedical, Inc.
                               Account #69002398

                                       13Exhibit 10.3

                        SUBORDINATED SECURITY AGREEMENT
                        -------------------------------

     FOR  VALUE  RECEIVED,   HEARTGEN  CENTERS,  INC.,  an  Indiana  corporation
("Debtor"),  hereby grants to VASOMEDICAL,  INC.,  ("Secured Party"), a security
interest in all Debtor's (i) Accounts,  excluding,  all Excluded Accounts,  (ii)
Deposit Accounts;  (iii) all books and records  (including,  without limitation,
credit files,  computer  programs,  printouts and other  computer  materials and
records)  of  Debtor  pertaining  to (i) and (ii)  above;  (iv)  all  additions,
accessions,  accessories,  and  replacements of (i) and (ii) above;  and (v) all
products and Proceeds of (i) and (ii) above, now owned and existing or hereafter
acquired or arising (all of the  above-described  property is referred to herein
collectively as the "Collateral").

     As used herein,  the term: (a) "Accounts"  means  "accounts" (as defined in
the UCC); (b) "Credit Agreement" means the Credit Agreement, dated as of January
11,  2002,  as amended by the First  Amendment to Credit  Agreement  dated as of
February __, 2002, and by the Loan  Modification  Agreement dated as of March 4,
2002, among RLA 1993 Trust,  Richard Abrahams,  Secured Party and Debtor, as the
same may be amended, modified, supplemented,  and/or restated from time to time;
(c) "Deposit  Accounts" means the deposit accounts listed on Schedule I attached
hereto and all other "deposit accounts" (as defined in the UCC) now or hereafter
owned by Debtor;  (d) "Proceeds" means all "proceeds" (as defined in the UCC) of
the Accounts and Deposit  Accounts;  (e) "Restricted  Account" means any Account
that  consists  of a claim for  payment  or the right to receive  payment  under
Medicare, Medicaid, or any similar government program which prohibits a provider
of services from  assigning or causing  payments due to such provider to be made
to any other  Person,  or restricts the  provider's  ability to do so; (f) "UCC"
means the  Uniform  Commercial  Code as adopted  and in effect in Indiana on the
date  hereof and as the same may be  amended  from time to time and at any time;
and (g)  "Warrant"  means the  Warrant  to  Purchase  Shares of Common  Stock of
HeartGen  Centers,  Inc.  issued  to  the  Secured  Party  on the  date  hereof.
Capitalized  terms used in this Security  Agreement  and not  otherwise  defined
herein shall have the meanings ascribed to them in the Credit Agreement.

     The security  interest  hereby  granted to Secured Party is given to secure
the performance  and payment when due of the  Obligations.  As used herein,  the
term "Obligations" shall mean the Debtor's obligations to repurchase the Warrant
pursuant  to the  terms of  Section 8  thereof;  provided  that the  Obligations
secured hereby shall not in any event exceed the sum of $249,945.00.

     Debtor represents and warrants to and agrees with Secured Party as follows:

     1. The Collateral.

     (a) Title. Debtor has or will acquire,  and will maintain full and absolute
title in Debtor to the  Collateral,  free of all security  interests,  liens and
encumbrances  other than (i) the security  interests  herein  granted to Secured
Party, (ii) the security interest created by the Primary Security  Agreement (as
hereinafter  defined) which security interest is senior to the security interest
granted herein, and (iii) liens,  security interests and other encumbrances that
are  enumerated  in  Section  5.02(a)(1)  through  (6) of the  Credit  Agreement
(collectively,  the  "Permitted  Liens").  Debtor has good right to subject  the
<PAGE>
Collateral to the security interests granted by this Security Agreement.  Except
with  respect to  Permitted  Liens and the  security  interests  granted by this
Security  Agreement,  no financing  statement,  mortgage,  security agreement or
similar or  equivalent  document or  instrument  covering all or any part of the
Collateral is on file or of record in any  jurisdiction  in which such filing or
recording  would be  effective  to perfect a lien or  security  interest on such
Collateral.

     (b)  Location.  Debtor  shall  keep full and  accurate  books  and  records
relating to the  Collateral in accordance  with  generally  accepted  accounting
principles.  Unless  Secured  Party  otherwise  consents,  all business  records
constituting,  relating to or evidencing any of the Collateral  shall be located
at Debtor's chief executive  office and principal  place of business  located at
10304 North Hayden Road,  Suite 3,  Scottsdale,  Arizona 85258  ("Debtor's Chief
Executive Office"), except as permitted in subparagraph (g) below.

     (c) Taxes and  Assessments.  Debtor shall  promptly pay, as they become due
and payable,  all taxes and assessments imposed upon the Collateral or upon this
Security Agreement.

     (d) Protection of Collateral.  Debtor shall not,  without the prior written
consent of Secured Party, sell, assign, transfer, or otherwise dispose of any of
the Collateral or any of Debtor's right,  title or interest  therein (except for
the creation or existence of  Permitted  Liens),  and shall not  otherwise do or
permit  anything  to be done or to  occur  that may  impair  the  Collateral  as
security hereunder.

     (e)  Accounts.  Each Account  subject to the  security  interest of Secured
Party:  (i) is not and will not be subject to any  agreement  wherein an Account
debtor on any Account may claim a deduction  or discount  except as reflected on
the document evidencing the Account; and (ii) is and will be owned by Debtor and
Debtor shall have the right to subject such Account to the security  interest of
Secured Party.  Debtor has taken all actions  necessary under the UCC to perfect
its interest in any Accounts  purchased or otherwise  acquired by it, as against
its assignors and creditors of its assignors.

     (f) Deposit Accounts. Schedule I attached hereto is a complete and accurate
list of all deposit  accounts  currently  owned by Debtor.  Debtor  shall notify
Secured  Party of each new Deposit  Account  established  by Debtor  pursuant to
Sections 6 and 7 of the Security  Agreement  between  Debtor and Secured  Party,
dated as of January 11, 2002 (the "Primary Security Agreement"). Debtor will not
establish any Deposit Account except pursuant to Sections 6 and 7 of the Primary
Security  Agreement.  Debtor will direct all account debtors who are third party
payors  to  make  payments  on  Accounts  directly  to the  appropriate  Deposit
Accounts,  and will deposit all  payments of the  Accounts  that are received by
Debtor into the appropriate Deposit Accounts.

     (g)  Name/Location.  Debtor has not, during the six (6) years preceding the
date  of  this  Security  Agreement,  been  known  as  or  used  any  corporate,
fictitious,  or assumed  name other than the name by which it is  identified  in
this Security Agreement, "Anicore International, Inc." and "HeartGen Centers" or
acquired any  operating  business  divisions or entities.  Debtor's  federal tax

                                       2
<PAGE>

identification number is 35-2062953.  Debtor will not change (i) the location of
Debtor's  Chief  Executive  Office;  (ii) the location of any Collateral if such
change  would  cause the lien and  security  interest  of Secured  Party in such
Collateral  to  lapse  or  cease to be  perfected  either  immediately  upon the
movement  thereof or after the passage of time;  or (iii) its name,  identity or
corporate structure in any manner; and will not reorganize under the laws of any
jurisdiction,  either as a corporation  or different  type of entity,  unless it
shall have given  Secured  Party not fewer than thirty (30) days' prior  written
notice thereof.

     2. Financing Statements, Certificates, Etc. Debtor will, from time to time,
at its expense,  execute,  deliver,  file and record any statement,  assignment,
instrument,  document,  agreement  or other  paper  and take any  other  action,
(including,  without  limitation,  any  filings  of  financing  or  continuation
statements  under  the UCC) that  from  time to time may be  necessary,  or that
Secured Party may reasonably  request,  in order to create,  preserve,  perfect,
confirm, validate, or protect the security interests granted or created pursuant
to this  Security  Agreement  or to  enable  Secured  Party to  obtain  the full
benefits of this Security Agreement,  or to enable Secured Party to exercise and
enforce any of its rights,  powers and remedies hereunder with respect to any of
the Collateral. To the extent permitted by law, Debtor hereby authorizes Secured
Party to execute  and file  financing  statements  and  continuation  statements
without  Debtor's  signature  appearing  thereon.  Debtor  agrees that a carbon,
photographic, photostatic or other reproduction of this Security Agreement or of
a financing  statement is  sufficient  as a financing  statement.  Secured Party
agrees to provide Debtor with a carbon,  photographic or photostatic copy of any
financing or continuation  statement or other document concerning the Collateral
filed by Secured  Party  without  Debtor's  signature or signed by Secured Party
pursuant  to the  power  of  attorney  granted  herein.  Debtor  shall  pay  the
reasonable  costs,  fees,  and expenses of, or  incidental  to, the  perfection,
protection and preservation of Secured Party's lien and security interest in the
Collateral, including without limitation any recording or filing fees, recording
taxes and stamp taxes incurred in connection with the filing or recording of all
financing  and  continuation  statements  and  other  documents  concerning  the
Collateral.

     3. General Covenants.

     (a)  Debtor  agrees to pay  promptly  when due all taxes,  assessments  and
governmental  charges  upon or against  the  Collateral,  or Debtor,  or for the
property or operations of Debtor, in each case before the same become delinquent
and before penalties accrue thereon,  unless and to the extent that the same are
being  contested in good faith by appropriate  proceedings  and for which Debtor
has established  adequate reserves.  Debtor shall give written notice to Secured
Party of all  happenings  and  events  having a material  adverse  effect on the
Collateral or the value or amount thereof;  including,  without limitation,  the
creation  or  assertion  of any lien or  security  interest  against  any of the
Collateral that is not a Permitted Lien.

     (b) In the event Debtor fails to pay taxes, assessments, costs and expenses
which  Debtor  is  required  to pay or in the  event  Debtor  fails  to keep the
Collateral  free  from  other  security  interests,  liens or  encumbrances  not
permitted  under the terms of this  Security  Agreement,  Secured Party may make
expenditures  for any and all such  purposes.  All costs and expenses of Secured

                                       3
<PAGE>

Party  in  retaking,  holding,  preparing  for  sale and  selling  or  otherwise
realizing  upon any  Collateral or enforcing any  provisions  hereof,  including
reasonable attorneys' fees, shall constitute part of the Obligations,  and shall
bear interest  from the date incurred at the rate of eighteen  percent (18%) per
annum.

     4. Processing, Sale and Collections. Debtor:

     (a)  will  use its best  efforts  to bill or make  claim  for  payment  for
services within three (3) business days of the date such services are performed;

     (b) will,  at its own  expense,  endeavor to collect,  as and when due, all
amounts due with  respect to any  Account,  including  the taking of such action
with respect to such  collection as Secured Party may reasonably  request or, in
the absence of such request, as Debtor may deem advisable; and

     (c) may grant, in the ordinary  course of business,  to any Account debtor,
any rebate,  refund or adjustment  to which such Account  debtor may be lawfully
entitled, and may accept, in connection therewith, the return of goods, the sale
or lease of which shall have given rise to the obligation of the Account debtor.

     If requested by Secured  Party,  Debtor will note the security  interest of
Secured  Party on all records  relative  to the  Collateral,  including  without
limitation  (but  only  after the  occurrence  of an Event of  Default  which is
continuing) Debtor's copy of any invoice that evidences an Account.

     5. Performance by Secured Party of Debtor's Agreements.  Secured Party may,
but shall have no duty to,  perform  any  agreement  of Debtor  hereunder  which
Debtor shall have failed to perform, and Debtor will forthwith reimburse Secured
Party  for  any  payment  made or any  expense  incurred  by  Secured  Party  in
connection with such performance.  Such payments and expenses shall constitute a
part of the Obligations and shall bear interest at the rate of eighteen  percent
(18%) annum from the date incurred by Secured Party.

     6.  Subordination of Liens.  This Security  Agreement and any and all other
right,  title,  liens and security interests which the Secured Party may acquire
from Debtor in the Collateral whether now owned or hereafter created or acquired
and wherever located as security for the  Obligations,  shall be junior in right
of  priority  to and  subordinate  to any and all liens and  security  interests
granted pursuant to the Primary Security Agreement.

     7. Control Agreements.  Pursuant to the Primary Security Agreement,  Debtor
and the  Initial  Lender  have  entered  and will  enter  into  certain  control
agreements with the financial institutions holding the Deposit Accounts in order
to perfect the security  interests  in the Deposit  Accounts  created  under the
Primary  Security  Agreement.  Upon  satisfaction  and  payment  in  full of the
obligations and  indebtedness  secured by the Primary  Security  Agreement,  and
provided that the Obligations under this Security Agreement remain  outstanding,
Debtor,  Secured Party (or a collateral  agent acting for the benefit of Secured
Party and all other secured parties holding security interests that are of equal
rank and priority  with the  security  interest  granted  hereunder;  herein,  a
"Collateral  Agent") and the appropriate  financial  institution(s)  shall enter

                                       4
<PAGE>

into control  agreements (a)  substantially in the form of Exhibit A attached to
the Primary  Security  Agreement  with respect to each  Deposit  Account that is
intended  to receive  deposits  of  payments  of  Restricted  Accounts;  and (b)
substantially  in the same forms as those  entered into  pursuant to the Primary
Security  Agreement,  with respect to each  Deposit  Account that is intended to
receive deposits of payments of Accounts other than Restricted Accounts. Secured
Party  agrees  that  Secured  Party  will not give  (and  will  not  direct  any
Collateral  Agent  to give)  Account  Directions  (as  defined  in such  control
agreements)  except  after  giving a Notice of  Exclusive  Control  pursuant  to
Section 10 of this Security Agreement.  Secured Party agrees that if at the time
the  Obligations  are fully paid and satisfied,  the Collateral  Agent is acting
only as agent for Secured Party,  Secured Party will direct the Collateral Agent
to terminate the control agreements.

     8. Events of Default.  The occurrence of each of the following events shall
constitute an Event of Default by Debtor under this Security Agreement (referred
to herein as an "Event of Default"):

     (a) Any  breach  by  Debtor  of any term,  covenant  or  provision  of this
Security Agreement.

     (b) Any  breach by  Debtor  in the  performance  of its  obligations  under
Section 8 of the Warrant.

     9. General Authority.  Debtor hereby irrevocably appoints the Secured Party
its true and lawful attorney,  with full power of  substitution,  in the name of
Debtor or Secured Party for the sole use and benefit of the Secured  Party,  but
at Debtor's expense, to the extent permitted by law to exercise, at any time and
from time to time while an Event of Default has occurred and is continuing,  all
or any of the  following  powers with  respect to all or any of the  Collateral,
other than Restricted Accounts and the proceeds thereof:

     (a) to demand,  sue for, collect,  receive and give acquittance for any and
all monies due or to become due thereon or by virtue thereof;

     (b) to  settle,  compromise,  compound,  prosecute  or defend any action or
proceeding with respect thereto;

     (c) to sell, transfer,  assign or otherwise deal in or with the same or the
proceeds or avails  thereof,  as fully and  effectually as if Secured Party were
the absolute owner thereof;

     (d) to extend  the time of payment  of any or all  thereof  and to make any
allowance and other adjustments with reference thereto; and

     (e) to make all  necessary or  appropriate  transfers of all or any part of
the Collateral in connection with any sale, lease or other  disposition  thereof
pursuant to this  Security  Agreement,  and  execute  and deliver any  documents
necessary or appropriate to effect,  evidence or facilitate such sale,  lease or
other disposition.

                                       5
<PAGE>

     10.  Remedies Upon Default.  Upon the occurrence of any Event of Default by
Debtor under this Security  Agreement and at any time thereafter  (such Event of
Default not  previously  having been cured or  waived),  Secured  Party shall be
entitled,  by written or  telegraphic  notice to Debtor,  to declare  all of the
Obligations to be immediately  due and payable,  whereupon the same shall become
immediately due and payable,  without presentation,  demand,  protest, notice of
protest,  or other  notice  of  dishonor  of any kind,  all of which are  hereby
expressly waived.  In addition,  upon the occurrence of any Event of Default and
at any time thereafter (such Event of Default having not previously been cured),
Secured  Party shall have all the remedies of a secured  party under the UCC and
as otherwise provided by applicable law, and shall have the right to give (or to
direct its  Collateral  Agent to give ) to the  Account  Holder  (as  defined in
Exhibits  A and B  attached  to the  Primary  Security  Agreement)  a Notice  of
Exclusive  Control  (as such term is used in the  Primary  Security  Agreement).
Secured  Party may  proceed by a suit or suits at law or in equity to  foreclose
its security interests and sell the Collateral,  or any portion thereof, under a
judgment or decree of a court or courts of competent jurisdiction.  The expenses
of retaking,  holding,  preparing for sale, selling and the like, and reasonable
attorneys'  fees and expenses  incurred by Secured  Party,  may be paid from the
proceeds of the disposition. Secured Party may receive, open and dispose of mail
addressed to Debtor and endorse notes, checks,  drafts, money orders,  documents
of title or other  evidences  of  payment,  shipment  or  storage or any form of
Collateral  on behalf  of and in the name of  Debtor,  as its  attorney-in-fact.
Secured  Party may cause Debtor to notify each Account  debtor in respect of any
Account that any payments due or to become due in respect of such Collateral are
to be made to Secured  Party,  or may notify each Account debtor to make payment
directly to Secured  Party (in which case Debtor  shall  provide  Secured  Party
access to Debtor's  books and records  regarding the Accounts in order to verify
Account debtor names and addresses), provided that the remedies provided in this
sentence  shall not be available to Secured  Party in respect of any  Restricted
Account or the proceeds thereof, except as may be authorized by subsequent court
order.  All  remedies of Secured  Party shall be  cumulative  to the full extent
provided by law.  Pursuit by Secured Party of certain judicial or other remedies
shall not abate nor bar resort to other remedies with respect to the Collateral,
and pursuit of certain  remedies  with respect to all or some of the  Collateral
shall  not bar  other  remedies  with  respect  to the  Obligations  or to other
portions  of the  Collateral.  Secured  Party  may  exercise  its  rights to the
Collateral  without  resorting  or  regard to other  collateral  or  sources  of
security or reimbursement for the Obligations.  Secured Party shall have no duty
to marshal Collateral.

     11. Expenses, Proceeds of Collateral.  Debtor shall pay to Secured Party on
demand any and all reasonable expenses,  including  reasonable  attorneys' fees,
incurred or paid by Secured  Party in  perfecting,  protecting  or enforcing its
rights upon or under  Obligations  or  Collateral.  After  deducting all of said
expenses the residue of any proceeds of collection  or sale of Collateral  shall
be applied to the payment of the Obligations as Secured Party may determine, and
Debtor shall remain fully liable for any deficiency.

     12.  Construction.  Should  applicable  law confer any rights or impose any
duties  inconsistent  with  or in  addition  to any of the  provisions  of  this
Security Agreement,  the affected provisions of this Security Agreement shall be
considered amended to conform to such law, but all other provisions hereof shall
remain in full force and effect without modification.

                                       6

     13. Successors in Interest.  This Security  Agreement shall be binding upon
and  inure  to the  benefit  of  Debtor,  Secured  Party  and  their  respective
successors, assigns and legal representatives.

     14.  Governing  Law  -  Jurisdiction.  The  validity,   interpretation  and
enforcement of this Security Agreement shall be governed by the internal laws of
the  State  of  Indiana  without  regard  to its  choice  or  conflicts  of laws
provisions.

     Executed and delivered as of the 4th day of March, 2002.

                                          HEARTGEN CENTERS, INC.

                                          By:____________________________

                                          Printed:_______________________

                                          Title:_________________________

<PAGE>

                                   Schedule I
                                   ----------

                                Deposit Accounts

Johnson Bank
8700 N. Gainey Center Drive
Scottsdale, AZ 85258
Acc. # 6030820613 checking
Acc. # 3052925068 money market
Acc. #6207024090

Union Federal Bank
PO Box 6054
Indianapolis, IN 46206-6054
Acc. # 590160168 deposit
Acc. # 590178997 petty cash

Community Bank of Nevada
1400 S. Rainbow
Las Vegas, NV 89146
Acc. # 0102024464 deposit
Acc. # 0102024456 petty cash

First Union National Bank
---------------------
Atlanta, Georgia ________
Acc. #2000010495852 deposit
Acc. #2000010495865 petty cash

First Union National Bank
---------------------
Tampa, Florida ________
Acc. #2000011016023 deposit
Acc. #2000011016036 petty cash

Harris Bank Elk Grove NA
500 E. Devon Avenue
Elk Grove Village, IL 60007
Acc. # 0600136530 deposit
Acc. # 0600136522 petty cash

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00037-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00037-of-00352.parquet"}]]