ORA-12674: Shared server: proxy context not saved
Cause : A connection was marked as being a proxy connection (database link) from a shared server but no inbound context was present.
Action - How to fix it : DBA Scripts :: www.high-oracle.com/scripts
This error should not normally be visible to the user. Contact Oracle Customer Support.
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.