UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 4
STATEMENT OF CHANGES IN BENEFICIAL OWNERSHIP
[ ] Check this box if no longer subject to Section 16.
Form 4 or Form 5 obligations may continue.
1. Name and Address of Reporting Person(s)
Kennedy, Douglas J.
8989 North Deerwood Drive
Milwaukee, WI 53223
2. Issuer Name and Ticker or Trading Symbol
Catalyst International, Inc. (CLYS)
3. IRS or Social Security Number of Reporting Person (Voluntary)
###-##-####
4. Statement for Month/Year
March 1997
5. If Amendment, Date of Original (Month/Year)
6. Relationship of Reporting Person(s) to Issuer (Check all applicable)
[ ] Director [ ] 10% Owner
[X] Officer (give title below) [ ] Other (specify below)
V.P. Software Engineering
7. Individual or Joint/Group Filing (Check Applicable Line)
[X] Form filed by One Reporting Person
[ ] Form filed by More than One Reporting Person
<TABLE>
<CAPTION>
Table I Non-Derivative Securities Acquired, Disposed of, or Beneficially Owned
- ------------------------------------------------------------------------------------------------------------------------------------
1)Title of Security 2)Trans- 3.Trans- 4.Securities Acquired(A) 5)Amount of 6) 7)Nature of
action action or Disposed of (D) Securities Indirect
Date Code A Beneficially D Beneficial
(Month/ or Owned at or Ownership
Day/Year) Code V Amount D Price End of Month I
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C><C> <C> <C><C>
<CAPTION>
Table II (PART 1) Derivative Securitites Acquired, Disposed of, or Beneficially Owned (Columns 1 through 6)
- ------------------------------------------------------------------------------------------------------------------------------------
1)Title of Derivative 2)Conversion 3)Trans- 4)Trans- 5)Number of Derivative 6)Date Exercisable and
Security or Exercise action action Securities Acquired (A) Expiration Date
Price of Date Code or Disposed of (D)
Derivative
Security Code V A D Exercisable Expiration
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
Employee Stock Option (right $8.500 03/12/97 H (1) V 3,000 (2) 04/03/06
to buy)
Employee Stock Option (right $8.500 03/12/97 H (1) V 10,000 (2) 04/03/06
to buy)
Employee Stock Option (right $6.750 03/12/97 H (1) V 10,000 (3) 07/26/06
to buy)
Employee Stock Option (right $4.125 03/12/97 H (1) V 5,000 (4) 12/06/06
to buy)
Employee Stock Option (right $3.500 03/12/97 A V 5,000 (5) 03/12/07
to buy)
Employee Stock Option (right $3.500 03/12/97 A V 10,000 (5) 03/12/07
to buy)
Employee Stock Option (right $3.500 03/12/97 A V 3,000 (5) 03/12/07
to buy)
Employee Stock Option (right $3.500 03/12/97 A V 10,000 (5) 03/12/07
to buy)
<CAPTION>
Table II (PART 2) Derivative Securitites Acquired, Disposed of, or Beneficially Owned (Columns 1,3 and 7 through 11)
- ------------------------------------------------------------------------------------------------------------------------------------
1)Title of Derivative 3)Trans- 7)Title and Amount 8)Price 9)Number of 10) 11)Nature of
Security action of Underlying of Deri- Derivative Indirect
Date Securities vative Securities D Beneficial
Amount or Security Beneficially or Ownership
Number of Owned at I
- Title Shares End of Month
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
Employee Stock Option (right 03/12/97 Common Stock 3,000 D
to buy)
Employee Stock Option (right 03/12/97 Common Stock 10,000 0 D
to buy)
Employee Stock Option (right 03/12/97 Common Stock 10,000 0 D
to buy)
Employee Stock Option (right 03/12/97 Common Stock 5,000 0 D
to buy)
Employee Stock Option (right 03/12/97 Common Stock 5,000 D
to buy)
Employee Stock Option (right 03/12/97 Common Stock 10,000 D
to buy)
Employee Stock Option (right 03/12/97 Common Stock 3,000 D
to buy)
Employee Stock Option (right 03/12/97 Common Stock 10,000 28,000 D
to buy)
<FN>
Explanation of Responses:
(1)
Cancellation of Option in connection with grant of replacement option, exempt under Rule 16b-3(f)(1).
(2)
The Option vests 20% on the first anniversary of the date of grant (04/03/96) and 1-2/3% each month thereafter, provided Mr.
Kennedy remains an employee of the Company.
(3)
The Option vests 20% on the first anniversary of the date of grant (07/26/96) and 1-2/3% each month thereafter, provided Mr.
Kennedy remains an employee of the Company.
(4)
The Option vests 20% on the first anniversary of the date of grant (12/06/96) and 1 2/3% each month thereafter, provided Mr.
Kennedy remains an employee of the Company.
(5)
The Option vests 20% on the first anniversary of the date of grant (3/12/97) and 1-2/3% each month thereafter, provided Mr. Kennedy
remains an employee of the Company.
</FN>
</TABLE>
SIGNATURE OF REPORTING PERSON
/S/ DOUGLAS J. KENNEDY
DATE 04/01/97
