ORA-09944: Password entry is corrupt.
Cause : An entry in an ORACLE password file was not in the format that ORACLE expected.
Action - How to fix it : DBA Scripts :: www.high-oracle.com/scripts
Removed the corrupt file(s) and re-run "orapasswd."
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.