EXHIBIT 10.4

PATENT SECURITY AGREEMENT

THIS PATENT SECURITY AGREEMENT (the “Agreement”) made as of this 20th day of
March, 2006, by CARDIOVASCULAR BIOTHERAPEUTICS, INC., a Delaware corporation
(“Grantor”) in favor of Promethean Asset Management L.L.C., on its own behalf
and in its capacity as collateral agent (together with its successors and
assigns in such capacity, the “Grantee”) for the benefit of the entities
identified on the Schedule of Buyers attached to the Purchase Agreement defined
below (together with their successors and assigns, the “Lenders”):

WITNESSETH

WHEREAS, on March 20, 2006, Lenders made loans and certain other financial
accommodations (collectively, the “Loans”) to Grantor, as evidenced by those
certain Senior Secured Notes, dated as of the date hereof, made by Grantor
payable to Lenders in the original aggregate principal amount of $20,000,000
(such notes, together with any promissory notes or other securities issued in
exchange or substitution therefor or replacement thereof, and as any of the same
may be amended, restated, modified or supplemented and in effect from time to
time, being herein referred to as the “Notes”).

WHEREAS, the Notes are being acquired by Lenders pursuant to a Securities
Purchase Agreement with Borrower dated as of March 20, 2006 (as same may be
amended, restated, modified or supplemented and in effect from time to time, the
“Purchase Agreement”)

WHEREAS, pursuant to a Security Agreement dated as of March 20, 2006 (as same
may be amended, restated, modified or supplemented and in effect from time to
time, the “Security Agreement”) among Grantor, the other “Debtors” from time to
time party thereto and Grantee, Grantor has granted to Grantee, for the benefit
of Lenders, a security interest in substantially all of the assets of Grantor
including all right, title and interest of Grantor in, to and under all now
owned and hereafter acquired Patents (as defined in the Security Agreement), and
all products and proceeds thereof;

NOW, THEREFORE, in consideration of the premises set forth herein and for other
good and valuable consideration, receipt and sufficiency of which are hereby
acknowledged, Grantor agrees as follows:

1. Incorporation of the Notes, Purchase Agreement and Security Agreement. The
Notes, the Purchase Agreement and Security Agreement and the terms and
provisions thereof are hereby incorporated herein in their entirety by this
reference thereto. All terms capitalized but not otherwise defined herein shall
have the same meanings herein as in the Security Agreement.

2. Grant and Reaffirmation of Grant of Security Interests. To secure the payment
and performance of the Liabilities, Grantor hereby grants to Grantee, for its
benefit and the benefit of Lenders, and hereby reaffirms its prior grant
pursuant to the Security Agreement of, a continuing security interest in
Grantor’s entire right, title and interest in and to the following (all of the
following items or types of property being herein collectively referred to as
the “Patent Collateral”), whether now owned or existing and hereafter created,
acquired or arising:

(i) each Patent and application for Patent listed on Schedule 1 annexed hereto,
together with any reissues, continuations or extensions thereof; and

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(ii) all products and proceeds of the foregoing, including, without limitation,
any claim by Grantor against third parties for past, present or future
infringement of any Patent.

[Signature Pages Follow]

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IN WITNESS WHEREOF, Grantor has duly executed this Agreement as of the date
first written above.

 

CARDIOVASCULAR BIOTHERAPEUTICS, INC. By:  

/s/ Mickael A. Flaa

Its:

 

Chief Financial Officer

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Agreed and Accepted

As of the Date First Written Above

 

PROMETHEAN ASSET MANAGEMENT L.L.C.,

as Collateral Agent

By:

 

/s/ Robert J. Brantman

Its:

 

Partner and Authorized Signatory

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SCHEDULE 1

U.S. Patents

 

HOLDER

  

PATENT

  

PATENT

NUMBER

  

ISSUE DATE

CardioVascular BioTherapeutics, Inc./ Phage Biotechnology Corporation   
Phage-Dependent Super-Production Of Biologically Active Protein And Peptides   
6,268,178    July 31, 2001 CardioVascular BioTherapeutics, Inc./ Phage
Biotechnology Corporation    Phage-Dependent Super-Production Of Biologically
Active Protein And Peptides    6,794,162    September 21, 2004 CardioVascular
BioTherapeutics, Inc./ Phage Biotechnology Corporation    Phage-Dependent
Super-Production Of Biologically Active Protein And Peptides    6,773,899   
August 10, 2004 CardioVascular BioTherapeutics, Inc./ Phage Biotechnology
Corporation    Method of Producing Biologically Active Human Acidic Fibroblast
Growth Factor and its Use in Promoting Angiogenesis    6,642,026    November 4,
2003

 

Page 1 of 7

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Foreign Patents

 

HOLDER

   COUNTRY   

PATENT

   PATENT
NUMBER   

ISSUE DATE

CardioVascular BioTherapeutics, Inc./Phage Biotechnology Corporation    Austria
   Phage-Dependent Super-Production Of Biologically Active Protein And Peptides
   1180153    April 13, 2005 CardioVascular BioTherapeutics, Inc./Phage
Biotechnology Corporation    Belgium    Phage-Dependent Super-Production Of
Biologically Active Protein And Peptides    1180153    April 13, 2005
CardioVascular BioTherapeutics, Inc./Phage Biotechnology Corporation   
Switzerland    Phage-Dependent Super-Production Of Biologically Active Protein
And Peptides    1180153    April 13, 2005 CardioVascular BioTherapeutics,
Inc./Phage Biotechnology Corporation    Germany    Phage-Dependent
Super-Production Of Biologically Active Protein And Peptides    1180153    April
13, 2005 CardioVascular BioTherapeutics, Inc./Phage Biotechnology Corporation   
EP    Phage-Dependent Super-Production Of Biologically Active Protein And
Peptides    1180153    April 13, 2005

 

Page 2 of 7

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CardioVascular BioTherapeutics, Inc./Phage Biotechnology Corporation    France
   Phage-Dependent Super-Production Of Biologically Active Protein And Peptides
   1180153    April 13, 2005 CardioVascular BioTherapeutics, Inc./Phage
Biotechnology Corporation    United
Kingdom    Phage-Dependent Super-Production Of Biologically Active Protein And
Peptides    1180153    April 13, 2005 CardioVascular BioTherapeutics, Inc./Phage
Biotechnology Corporation    Ireland    Phage-Dependent Super-Production Of
Biologically Active Protein And Peptides    1180153    April 13, 2005
CardioVascular BioTherapeutics, Inc./Phage Biotechnology Corporation   
Liechtenstein    Phage-Dependent Super-Production Of Biologically Active Protein
And Peptides    1180153    April 13, 2005

 

Page 3 of 7

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U.S. Patent Applications

 

HOLDER

  

PATENT

   APPLICATION
NUMBER  

APPLICATION DATE

CardioVascular BioTherapeutics, Inc./Phage Biotechnology Corporation    Method
of Producing Biologically Active Human Acidic Fibroblast Growth Factor and its
Use in Promoting Angiogenesis    10/649,480   August 27, 2003

Foreign Patent Applications

 

HOLDER

   COUNTRY   

PATENT

   APPLICATION
NUMBER   

APPLICATION DATE

CardioVascular BioTherapeutics, Inc./Phage Biotechnology Corporation    Japan   
Phage-Dependent Super-Production Of Biologically Active Protein And Peptides   
2000 620108    May 24, 2000 CardioVascular BioTherapeutics, Inc./Phage
Biotechnology Corporation    Australia    Phage-Dependent Super-Production Of
Biologically Active Protein And Peptides    2001 284914    August 15, 2001
CardioVascular BioTherapeutics, Inc./Phage Biotechnology Corporation    Canada
   Phage-Dependent Super-Production Of Biologically Active Protein And Peptides
   2419203    August 15, 2001

 

Page 4 of 7

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CardioVascular BioTherapeutics, Inc./Phage Biotechnology Corporation    Europe
   Phage-Dependent Super-Production Of Biologically Active Protein And Peptides
   01964014.3    August 15, 2001 CardioVascular BioTherapeutics, Inc./Phage
Biotechnology Corporation    Japan    Phage-Dependent Super-Production Of
Biologically Active Protein And Peptides    2002-519596    August 15, 2001
CardioVascular BioTherapeutics, Inc./Phage Biotechnology Corporation    Korea   
Phage-Dependent Super-Production Of Biologically Active Protein And Peptides   
2003-7002240    August 15, 2001 CardioVascular BioTherapeutics, Inc./Phage
Biotechnology Corporation    Australia    Method of Producing Biologically
Active Human Acidic Fibroblast Growth Factor and its Use in Promoting
Angiogenesis    2001 288256    August 15, 2001 CardioVascular BioTherapeutics,
Inc./Phage Biotechnology Corporation    Canada    Method of Producing
Biologically Active Human Acidic Fibroblast Growth Factor and its Use in
Promoting Angiogenesis    2419338    August 15, 2001

 

Page 5 of 7

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CardioVascular BioTherapeutics, Inc./Phage Biotechnology Corporation    Europe
   Method of Producing Biologically Active Human Acidic Fibroblast Growth Factor
and its Use in Promoting Angiogenesis    01967977.8    August 15, 2001
CardioVascular BioTherapeutics, Inc./Phage Biotechnology Corporation    Japan   
Method of Producing Biologically Active Human Acidic Fibroblast Growth Factor
and its Use in Promoting Angiogenesis    2002-519599   

August 15, 2001

CardioVascular BioTherapeutics, Inc./Phage Biotechnology Corporation    Korea   
Method of Producing Biologically Active Human Acidic Fibroblast Growth Factor
and its Use in Promoting Angiogenesis    2003-7002239   

August 15, 2001

Patent Licenses

 

LICENSED

PATENTS

  

NAME OF AGREEMENT

  

PARTIES

  

DATE OF AGREEMENT

None

 

Page 6 of 7

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2443398

031506

2444654

031506

2460753

032006

 

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