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<TITLE>UNITED STATES</TITLE>


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<FONT SIZE=3><P ALIGN="CENTER">SECURITIES AND EXCHANGE COMMISSION</P>


<P ALIGN="CENTER">Washington, D.C.  20549</P>


<P ALIGN="CENTER"></P>


<P ALIGN="CENTER">_________________</P>


<P ALIGN="CENTER"></P>


<P ALIGN="CENTER">FORM 8-K</P>


<P ALIGN="CENTER"></P>


<P ALIGN="CENTER">CURRENT REPORT PURSUANT </P>


<P ALIGN="CENTER">TO SECTION 13 OR 15(d) OF THE</P>


<P ALIGN="CENTER">SECURITIES EXCHANGE ACT OF 1934</P>


<P ALIGN="JUSTIFY"></P>


<P ALIGN="JUSTIFY">&nbsp;</P>


<P ALIGN="CENTER">Date of Report (Date of Earliest Event Reported): February 9, 2005</P>


<P ALIGN="JUSTIFY"></P>


<P ALIGN="CENTER">NATCO Group Inc.</P>


<P ALIGN="CENTER"></P>


<P ALIGN="CENTER">(Exact Name of Registrant as Specified in its Charter)</P>


<P ALIGN="JUSTIFY"></P>


<P ALIGN="JUSTIFY">&nbsp;</P></FONT>


<TABLE CELLSPACING=0 BORDER=0 CELLPADDING=7 WIDTH=631>


<TR><TD WIDTH="30%" VALIGN="TOP">


<FONT SIZE=3><P ALIGN="CENTER">Delaware</FONT></TD>


<TD WIDTH="36%" VALIGN="TOP">


<FONT SIZE=3><P ALIGN="CENTER">001-15603</FONT></TD>


<TD WIDTH="34%" VALIGN="TOP">


<FONT SIZE=3><P ALIGN="CENTER">22-2906892</FONT></TD>


</TR>


<TR><TD WIDTH="30%" VALIGN="TOP">


<FONT SIZE=3><P ALIGN="CENTER">(State of Incorporation)</FONT></TD>


<TD WIDTH="36%" VALIGN="TOP">


<FONT SIZE=3><P ALIGN="CENTER">(Commission File Number)</FONT></TD>


<TD WIDTH="34%" VALIGN="TOP">


<FONT SIZE=3><P ALIGN="CENTER">(IRS Employer</FONT></TD>


</TR>


<TR><TD WIDTH="30%" VALIGN="TOP">&nbsp;</TD>


<TD WIDTH="36%" VALIGN="TOP">&nbsp;</TD>


<TD WIDTH="34%" VALIGN="TOP">


<FONT SIZE=3><P ALIGN="CENTER">Identification No.)</FONT></TD>


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<FONT SIZE=3><P ALIGN="JUSTIFY"></P></FONT>


<TABLE CELLSPACING=0 BORDER=0 CELLPADDING=7 WIDTH=630>


<TR><TD WIDTH="52%" VALIGN="TOP">


<FONT SIZE=3><P ALIGN="CENTER">2950 North Loop West, 7<SUP>th</SUP> Floor</FONT></TD>


<TD WIDTH="48%" VALIGN="TOP">&nbsp;</TD>


</TR>


<TR><TD WIDTH="52%" VALIGN="TOP">


<FONT SIZE=3><P ALIGN="CENTER">Houston, Texas</FONT></TD>


<TD WIDTH="48%" VALIGN="TOP">


<FONT SIZE=3><P ALIGN="CENTER">77092</FONT></TD>


</TR>


<TR><TD WIDTH="52%" VALIGN="TOP">


<FONT SIZE=3><P ALIGN="CENTER">(Address of Principal Executive Offices)</FONT></TD>


<TD WIDTH="48%" VALIGN="TOP">


<FONT SIZE=3><P ALIGN="CENTER">(Zip Code)</FONT></TD>


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<FONT SIZE=3><P ALIGN="JUSTIFY"></P>


<P ALIGN="CENTER">&nbsp;</P>


<P ALIGN="CENTER">Registrant's Telephone Number, Including Area Code: (713) 683-9292</P>


<P ALIGN="CENTER"></P>


<P ALIGN="JUSTIFY">&nbsp;</P>


<P ALIGN="JUSTIFY">Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:</P>


<P ALIGN="JUSTIFY"></P><DIR>


<DIR>





<P ALIGN="JUSTIFY">[  ]&#9;Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)</P>


<P ALIGN="JUSTIFY"></P>


<P ALIGN="JUSTIFY">[  ]&#9;Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)</P>


<P ALIGN="JUSTIFY"></P>


<P ALIGN="JUSTIFY">[  ]&#9;Pre-commencement communication pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))</P>


<P ALIGN="JUSTIFY"></P>


<P ALIGN="JUSTIFY">[  ]&#9;Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))</P></DIR>


</DIR>





<B><P>Item&nbsp;1.01</B>&#9;&nbsp;<B>Entry Into a Material Definitive Agreement.</P>


</B>


<P>NATCO Group Inc. awards annual cash bonus incentive opportunities under its annual bonus plans to senior executives and other key employees.  The amount of an executive's bonus opportunity, which is expressed as a percentage of base salary, depends primarily on that individual's position and responsibilities.  The range of these percentages for our executive officers is from 35% to 75%.</P>





<P>The Governance, Nominating and Compensation Committee, or GNC Committee, of our Board of Directors determined on February 9, 2005 the payout under NATCO's 2004 bonus plan to senior executives and other key employees.  The senior executive officers of the Company constituting &quot;named executive officers&quot; under applicable law and regulations that were awarded such bonuses, and the amounts of such bonuses are set forth below.  The bonuses were distributed on March 15, 2005. </P>





<P>The GNC Committee also determined on February 9, 2005 the parameters for bonus payouts to senior executives and other key employees for 2005.  The Company targets the 50<SUP>th</SUP> percentile compensation for overall comparisons to industry peers with the opportunity to achieve up to the 75<SUP>th</SUP> percentile if performance warrants.  The plan is designed to unify management's efforts by using consolidated results as the primary measure of performance while recognizing segment results, business unit results and individual contribution in determining final awards.  Identified employees are eligible to participate in the program, but are neither entitled to, nor guaranteed, a bonus payment.  Half of each participant's bonus will be based on NATCO consolidated financial performance, using EBITDA (as defined below) and return on assets as measures, 30% of each plan participant's bonus will be based on segment performance, using segment EBITDA and return on assets and 20% of each plan participant's bonus will be based on specific business unit and individual objectives that include safety, bookings, cost reduction, working capital and business initiative goals.  For 2005 bonus plan purposes, the Company's EBITDA is defined as NATCO's consolidated actual earnings before interest expense, income tax provision (credit), non-operating expense, retiree medical, preferred stock dividend, depreciation and amortization for 2005.  Individual contribution factors can range from zero to 1.5 times an individual's bonus target percentage relative to that individual's performance criteria.  Funding of the various bonus pools is dependent on meeting certain thresholds, and the pool amounts are subject to GNC Committee discretion.  </P>





<P>The cash bonuses paid on March 15, 2005 for 2004 and the 2005 target bonuses for our named executive officers are as follows:</P>


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<TABLE CELLSPACING=0 BORDER=0 CELLPADDING=7 WIDTH=619>


<TR><TD WIDTH="26%" VALIGN="TOP">


<B><U><FONT SIZE=3><P ALIGN="JUSTIFY">&nbsp;</P>


<P ALIGN="JUSTIFY">Name&#9;</B></U></FONT></TD>


<TD WIDTH="32%" VALIGN="TOP">


<B><U><FONT SIZE=3><P ALIGN="JUSTIFY"></P>


<P ALIGN="JUSTIFY">Position&#9;</B></U></FONT></TD>


<TD WIDTH="20%" VALIGN="TOP">


<B><U><FONT SIZE=3><P>2004 Annual Cash Bonus&#9;</B></U></FONT></TD>


<TD WIDTH="23%" VALIGN="TOP">


<B><U><FONT SIZE=3><P>2005 Target Bonus Opportunity&#9;</B></U></FONT></TD>


</TR>


<TR><TD WIDTH="26%" VALIGN="TOP">


<FONT SIZE=3><P ALIGN="JUSTIFY">John U. Clarke</FONT></TD>


<TD WIDTH="32%" VALIGN="TOP">


<FONT SIZE=3><P>Chief Executive Officer</FONT></TD>


<TD WIDTH="20%" VALIGN="TOP">


<FONT SIZE=3><P ALIGN="RIGHT">(1)</FONT></TD>


<TD WIDTH="23%" VALIGN="TOP">


<FONT SIZE=3><P ALIGN="CENTER">75%</FONT></TD>


</TR>


<TR><TD WIDTH="26%" VALIGN="TOP">


<FONT SIZE=3><P ALIGN="JUSTIFY">Patrick M. McCarthy</FONT></TD>


<TD WIDTH="32%" VALIGN="TOP">


<FONT SIZE=3><P>President</FONT></TD>


<TD WIDTH="20%" VALIGN="TOP">


<FONT SIZE=3><P ALIGN="RIGHT">$          143,933</FONT></TD>


<TD WIDTH="23%" VALIGN="TOP">


<FONT SIZE=3><P ALIGN="CENTER">60%</FONT></TD>


</TR>


<TR><TD WIDTH="26%" VALIGN="TOP">


<FONT SIZE=3><P ALIGN="JUSTIFY">Richard W. FitzGerald</FONT></TD>


<TD WIDTH="32%" VALIGN="TOP">


<FONT SIZE=3><P>Senior Vice President and Chief Financial Officer</FONT></TD>


<TD WIDTH="20%" VALIGN="TOP">


<FONT SIZE=3><P ALIGN="RIGHT">$            84,250</FONT></TD>


<TD WIDTH="23%" VALIGN="TOP">


<FONT SIZE=3><P ALIGN="CENTER">50%</FONT></TD>


</TR>


<TR><TD WIDTH="26%" VALIGN="TOP">


<FONT SIZE=3><P ALIGN="JUSTIFY">C. Frank Smith</FONT></TD>


<TD WIDTH="32%" VALIGN="TOP">


<FONT SIZE=3><P>Executive Vice President</FONT></TD>


<TD WIDTH="20%" VALIGN="TOP">


<FONT SIZE=3><P ALIGN="RIGHT">$          122,846</FONT></TD>


<TD WIDTH="23%" VALIGN="TOP">


<FONT SIZE=3><P ALIGN="CENTER">50%</FONT></TD>


</TR>


<TR><TD WIDTH="26%" VALIGN="TOP">


<FONT SIZE=3><P ALIGN="JUSTIFY">Robert A. Curcio</FONT></TD>


<TD WIDTH="32%" VALIGN="TOP">


<FONT SIZE=3><P>Senior Vice President</FONT></TD>


<TD WIDTH="20%" VALIGN="TOP">


<FONT SIZE=3><P ALIGN="RIGHT">$          108,097</FONT></TD>


<TD WIDTH="23%" VALIGN="TOP">


<FONT SIZE=3><P ALIGN="CENTER">50%</FONT></TD>


</TR>


</TABLE>





<U><FONT SIZE=3><P ALIGN="JUSTIFY">&#9;&#9;&#9;</P><DIR>


<DIR>





</U><P ALIGN="JUSTIFY">(1)&#9;Mr. Clarke was not elected as CEO until December 2004 and, therefore, did not participate in the 2004 bonus program.  However, Mr. Clarke did receive a $100,000 signing bonus in December 2004 pursuant to the terms of his employment agreement.</P>





<P ALIGN="CENTER">&nbsp;</P></DIR>


</DIR>





<P ALIGN="CENTER">SIGNATURE</P>





<P>Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.</P>





<P>&nbsp;</P>


<P>Dated:  March 31, 2005</P>


<P>&#9;NATCO Group Inc.</P>





<P>&nbsp;</P>


<P>&nbsp;</P>


<P>By: <U>&#9;/s/ John U. Clarke&#9;&#9;&#9;</P>


</U><P>&#9;&#9;&#9;&#9;&#9;&#9;&#9;&#9;John U. Clarke</P>


<P>&#9;Chairman and Chief Executive Officer</P></FONT></BODY>


</HTML>
[{"type": "8-K", "sequence": "1", "filename": "rrd74010.htm", "secsgml_size_bytes": 9762}]
{"company-data": {"conformed-name": "NATCO GROUP INC", "cik": "0001057693", "assigned-sic": "3443", "irs-number": "222906892", "state-of-incorporation": "DE", "fiscal-year-end": "0331"}, "filing-values": {"form-type": "8-K", "act": "34", "file-number": "001-15603", "film-number": "05722394"}, "business-address": {"street1": "BROOKHOLLOW CENTRAL III", "street2": "2950 NORTH LOOP WEST STE 750", "city": "HOUSTON", "state": "TX", "zip": "77092", "phone": "7136839292"}, "mail-address": {"street1": "BROOKHOLLOW CENTERL III", "street2": "2950 NORTH LOOP WEST STE 750", "city": "HOUSTON", "state": "TX", "zip": "77092"}}
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C.  20549
_________________
FORM 8-K
CURRENT REPORT PURSUANT
TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of Earliest Event Reported): February 9, 2005
NATCO Group Inc.
(Exact Name of Registrant as Specified in its Charter)
Delaware
001-15603
22-2906892
(State of Incorporation)
(Commission File Number)
(IRS Employer
Identification No.)
2950 North Loop West, 7
th
Floor
Houston, Texas
77092
(Address of Principal Executive Offices)
(Zip Code)
Registrant's Telephone Number, Including Area Code: (713) 683-9292
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
[  ]	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
[  ]	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
[  ]	Pre-commencement communication pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
[  ]	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Item 1.01
Entry Into a Material Definitive Agreement.
NATCO Group Inc. awards annual cash bonus incentive opportunities under its annual bonus plans to senior executives and other key employees.  The amount of an executive's bonus opportunity, which is expressed as a percentage of base salary, depends primarily on that individual's position and responsibilities.  The range of these percentages for our executive officers is from 35% to 75%.
The Governance, Nominating and Compensation Committee, or GNC Committee, of our Board of Directors determined on February 9, 2005 the payout under NATCO's 2004 bonus plan to senior executives and other key employees.  The senior executive officers of the Company constituting "named executive officers" under applicable law and regulations that were awarded such bonuses, and the amounts of such bonuses are set forth below.  The bonuses were distributed on March 15, 2005.
The GNC Committee also determined on February 9, 2005 the parameters for bonus payouts to senior executives and other key employees for 2005.  The Company targets the 50
th
percentile compensation for overall comparisons to industry peers with the opportunity to achieve up to the 75
th
percentile if performance warrants.  The plan is designed to unify management's efforts by using consolidated results as the primary measure of performance while recognizing segment results, business unit results and individual contribution in determining final awards.  Identified employees are eligible to participate in the program, but are neither entitled to, nor guaranteed, a bonus payment.  Half of each participant's bonus will be based on NATCO consolidated financial performance, using EBITDA (as defined below) and return on assets as measures, 30% of each plan participant's bonus will be based on segment performance, using segment EBITDA and return on assets and 20% of each plan participant's bonus will be based on specific business unit and individual objectives that include safety, bookings, cost reduction, working capital and business initiative goals.  For 2005 bonus plan purposes, the Company's EBITDA is defined as NATCO's consolidated actual earnings before interest expense, income tax provision (credit), non-operating expense, retiree medical, preferred stock dividend, depreciation and amortization for 2005.  Individual contribution factors can range from zero to 1.5 times an individual's bonus target percentage relative to that individual's performance criteria.  Funding of the various bonus pools is dependent on meeting certain thresholds, and the pool amounts are subject to GNC Committee discretion.
The cash bonuses paid on March 15, 2005 for 2004 and the 2005 target bonuses for our named executive officers are as follows:
Name
Position
2004 Annual Cash Bonus
2005 Target Bonus Opportunity
John U. Clarke
Chief Executive Officer
(1)
75%
Patrick M. McCarthy
President
$          143,933
60%
Richard W. FitzGerald
Senior Vice President and Chief Financial Officer
$            84,250
50%
C. Frank Smith
Executive Vice President
$          122,846
50%
Robert A. Curcio
Senior Vice President
$          108,097
50%
(1)	Mr. Clarke was not elected as CEO until December 2004 and, therefore, did not participate in the 2004 bonus program.  However, Mr. Clarke did receive a $100,000 signing bonus in December 2004 pursuant to the terms of his employment agreement.
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
Dated:  March 31, 2005
NATCO Group Inc.
By:
/s/ John U. Clarke
John U. Clarke
Chairman and Chief Executive Officer