You said the message was for: (HQ Agent Memory - JVM Free Memory < 14.3 MB).
You changed the setting for SASServer 1, which doesn't help the agent.
1. Stop the agent (Even if it is not running just to be sure)
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cd /<SASCONFIG>/Lev1/Web/SASEnvironmentManager/agent-5.0.0-EE/bin
./hq-agent.sh stop
2. Edit wrapper.conf
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cd /<SASCONFIG>/Lev1/Web/SASEnvironmentManager/agent-5.0.0-EE/bundles/agent-5.0.0/conf
Edit wrapper.conf:
Look at entry "wrapper.java.additional.2="
Default is "wrapper.java.additional.2=-Xmx128m"
Test with -Xmx512m,
3. Restart agent:
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cd /<SASCONFIG>/Lev1/Web/SASEnvironmentManager/agent-5.0.0-EE/bin
./hq-agent.sh start