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): September 25, 2006


                                ASHLAND INC.
           (Exact name of registrant as specified in its charter)


                                  Kentucky
               (State or other jurisdiction of incorporation)


        1-32532                                       20-0865835
(Commission File Number)               (I.R.S. Employer Identification No.)

           50 E. RiverCenter Boulevard, Covington, Kentucky 41011
            (Address of principal executive offices) (Zip Code)

                P.O. Box 391, Covington, Kentucky 41012-0391
                        (Mailing Address) (Zip Code)

     Registrant's telephone number, including area code (859) 815-3333

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  communications 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))

                                    -1-
<PAGE>


Item 1.01. Entry into a Material Definitive Agreement
-----------------------------------------------------

     On September 25, 2006, Ashland Inc. ("Ashland") tendered a new form of
executive  employment  agreement  (the "Revised  Employment  Agreement") to
certain of Ashland's  executive  officers for their execution.  The primary
differences  between  the  Revised  Employment  Agreement  and the  form of
executive  employment  agreement  previously  utilized by Ashland relate to
changes resulting from Section 409A of the Internal Revenue Code, including
the addition of a six-month delay in the payment of severance benefits,  if
any.

     The material terms of the Revised  Employment  Agreement are otherwise
similar to those of the previously  utilized agreement (included as Exhibit
10.6 to  Ashland's  annual  report on Form 10-K for the  fiscal  year ended
September 30, 2002) and include the following. In the event the executive's
employment  is  terminated  without  cause,  he or she will be  entitled to
receive  payment of his or her highest  salary  during the prior two fiscal
years for a period of two years after his or her  employment  ends.  If the
executive is terminated without cause or resigns for good reason within two
years  after a change in  control  of  Ashland,  he or she would  receive a
payment  equal to three times his or her highest  annual base  compensation
plus annual incentive  compensation,  calculated on the basis of the target
bonus  percentage  of  base   compensation  in  the  applicable   incentive
compensation plan (or plans),  during the prior three fiscal years. Certain
benefits  would  continue for a period of up to two years after the year in
which the termination occurred,  depending on the benefit, if the executive
is terminated  without cause.  The terms "cause," "good reason" and "change
in control" are defined in the Revised Employment Agreement.

     The foregoing  description of the Revised Employment  Agreement is not
complete and is qualified in its entirety by reference to the complete form
of the Revised  Employment  Agreement  which is attached  hereto as Exhibit
10.1 and incorporated by reference herein.

Item 9.01.  Financial Statements and Exhibits
---------------------------------------------

(d)	   Exhibits

10.1   Revised form of Executive  Employment  Agreement between Ashland and
       certain executives of Ashland tendered on September 25, 2006.

                                    -2-
<PAGE>

                                 SIGNATURES

     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 thereunto duly authorized.


                                                ASHLAND INC.
                                 ------------------------------------------
                                                (Registrant)


September 28, 2006                /s/ David L. Hausrath
                                 ------------------------------------------
                                  David L. Hausrath
                                  Senior Vice President and General Counsel

                                    -3-
<PAGE>

                               EXHIBIT INDEX

10.1   Revised form of Executive  Employment  Agreement between Ashland and
       certain executives of Ashland tendered on September 25, 2006.



                                    -4-
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{"company-data": {"conformed-name": "ASHLAND INC.", "cik": "0001305014", "assigned-sic": "5160", "irs-number": "200865835", "state-of-incorporation": "KY", "fiscal-year-end": "0930"}, "filing-values": {"form-type": "8-K", "act": "34", "file-number": "001-32532", "film-number": "061113421"}, "business-address": {"street1": "50 EAST RIVERCENTER BLVD., 16TH FLOOR", "city": "COVINGTON", "state": "KY", "zip": "41012", "phone": "859-815-3483"}, "mail-address": {"street1": "50 EAST RIVERCENTER BLVD., 16TH FLOOR", "city": "COVINGTON", "state": "KY", "zip": "41012"}, "former-company": {"former-conformed-name": "New EXM Inc.", "date-changed": "20041004"}}
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): September 25, 2006

                                ASHLAND INC.
           (Exact name of registrant as specified in its charter)

                                  Kentucky
               (State or other jurisdiction of incorporation)

        1-32532                                       20-0865835
(Commission File Number)               (I.R.S. Employer Identification No.)

           50 E. RiverCenter Boulevard, Covington, Kentucky 41011
            (Address of principal executive offices) (Zip Code)

                P.O. Box 391, Covington, Kentucky 41012-0391
                        (Mailing Address) (Zip Code)

     Registrant's telephone number, including area code (859) 815-3333

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  communications 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))

                                    -1-
Item 1.01. Entry into a Material Definitive Agreement
-----------------------------------------------------

     On September 25, 2006, Ashland Inc. ("Ashland") tendered a new form of
executive  employment  agreement  (the "Revised  Employment  Agreement") to
certain of Ashland's  executive  officers for their execution.  The primary
differences  between  the  Revised  Employment  Agreement  and the  form of
executive  employment  agreement  previously  utilized by Ashland relate to
changes resulting from Section 409A of the Internal Revenue Code, including
the addition of a six-month delay in the payment of severance benefits,  if
any.

     The material terms of the Revised  Employment  Agreement are otherwise
similar to those of the previously  utilized agreement (included as Exhibit
10.6 to  Ashland's  annual  report on Form 10-K for the  fiscal  year ended
September 30, 2002) and include the following. In the event the executive's
employment  is  terminated  without  cause,  he or she will be  entitled to
receive  payment of his or her highest  salary  during the prior two fiscal
years for a period of two years after his or her  employment  ends.  If the
executive is terminated without cause or resigns for good reason within two
years  after a change in  control  of  Ashland,  he or she would  receive a
payment  equal to three times his or her highest  annual base  compensation
plus annual incentive  compensation,  calculated on the basis of the target
bonus  percentage  of  base   compensation  in  the  applicable   incentive
compensation plan (or plans),  during the prior three fiscal years. Certain
benefits  would  continue for a period of up to two years after the year in
which the termination occurred,  depending on the benefit, if the executive
is terminated  without cause.  The terms "cause," "good reason" and "change
in control" are defined in the Revised Employment Agreement.

     The foregoing  description of the Revised Employment  Agreement is not
complete and is qualified in its entirety by reference to the complete form
of the Revised  Employment  Agreement  which is attached  hereto as Exhibit
10.1 and incorporated by reference herein.

Item 9.01.  Financial Statements and Exhibits
---------------------------------------------

(d)	   Exhibits

10.1   Revised form of Executive  Employment  Agreement between Ashland and
       certain executives of Ashland tendered on September 25, 2006.

                                    -2-
SIGNATURES

     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 thereunto duly authorized.

                                                ASHLAND INC.
                                 ------------------------------------------
                                                (Registrant)

September 28, 2006                /s/ David L. Hausrath
                                 ------------------------------------------
                                  David L. Hausrath
                                  Senior Vice President and General Counsel

                                    -3-
EXHIBIT INDEX

10.1   Revised form of Executive  Employment  Agreement between Ashland and
       certain executives of Ashland tendered on September 25, 2006.

                                    -4-