When user rebinds an existing package the script correctly reads from the syscat.package for the options to be used BUT errors on the rebind
STATUS
Waiting for a fix with CR 80229 on a future release of Toad for DB2.
WORKAROUND:
On Toad, remove the option the script allows the rebind.
OR at command line on the database server, manually run the command with the APREUSE NO option.