COBEC0012S EXEC <x> Preprocessor is not active

Your source code contains EXEC DLI or EXEC SQL statements, but the appropriate preprocessor is not begin used according to the options specified to the TX preprocessor. See the chapter on Working with Databases.
System Action:
The EXEC statement is treated as comments, a SEVERE error is raised, and processing continues with the word following the END-EXEC.
Resolution:
Either omit the EXEC statement from the source or use the appropriate preprocessor with the TX preprocessor and indicate its use in the options.
Module:
cicsprep (dfhxc2pp)
Destination:
Source Listing, .TRL file, STDOUT