ORA-12676: Server received internal error from client
Cause : The server process received an error from the client which indicated that an internal Oracle Net native services error had occurred.
Action - How to fix it : DBA Scripts :: www.high-oracle.com/scripts
Enable tracing on both processes and attempt to recreate the problem. If the problem recurs, 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.