ORA-06536: IN bind variable bound to an OUT position
Cause : The program attempted to bind an IN bind variable to a statement that was expecting an OUT bind variable at that position.
Action - How to fix it : DBA Scripts :: www.high-oracle.com/scripts
Make sure that an OUT or IN OUT bind mode is specified for the bind argument.
Well, the reason for above error is that i have taken the above script from a 11g database and running it on 10g database. 11g has bring some changes in password management. Below code is executed on 11g and user created successfully, which is expected result.