Caret in argument list c++

So I found this in the MSDN libs:

void Form1_KeyPress(Object^ sender, KeyPressEventArgs^ e)

what do the carets mean in an argument list? Is it some sort of explicit pass-by-value? I've never seen it before.

It seems that the obvious answer to this thread would be: Use Java!

It is both cross-platform and comes with several fast and easy-to-use GUI toolkits.