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I personally can't see any value in a desupported and not fully patched database so I can't imagine why you are spending your time on this but the answer to any patching question starts with "read the notes" that came with the patch.
catupgrd.sql needs to be run only if you are upgrading a database from a previous version. If you are going to create a new database using the 10.2.0.4 HOME, then it should not be run.
As Dan noted, is there a reason you are using an de-supported version of the database ?
Just create database manually through scripts or dbca