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): November 10, 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 5.02.  Departure of Directors or Principal Officers;
            Election of Directors;
            Appointment of Principal Officers;
            Compensatory Arrangements of Certain Officers

     Ashland  Inc.   ("Ashland")  entered  into  a  letter  agreement  (the
"Agreement") with Gary A. Cappeline, which became effective on November 10,
2006.  The  Agreement   supersedes  the  previously   disclosed   executive
employment agreement between Mr. Cappeline and Ashland. This Agreement sets
forth terms to be included in a Separation  Agreement  and General  Release
(the  "Separation  Agreement")  to be  executed  upon his  retirement  from
Ashland on or before March 31, 2007 (the "Release  Date").  The  Separation
Agreement  will provide for a lump sum payment  equivalent  to 24 months of
base  pay,  plus  interest,  to be paid on or about  the  first  day of the
seventh  calendar  month  following  the  month in which his  Release  Date
occurs.  If Mr.  Cappeline  resigns from Ashland before March 31, 2007, the
total  additional  base pay that would have been earned  through  that date
will be added to his lump sum payment.  The Separation  Agreement will also
include a general  release of Ashland  and a two-year  non-competition  and
non-solicitation restriction.

     Mr. Cappeline's  participation in most of Ashland's benefit plans will
end at the Release Date, and his restricted stock,  stock options and stock
appreciation  rights  will vest on the Release  Date.  Mr.  Cappeline  will
receive a prorated  portion of any LTIP Awards for the performance  periods
which  include  fiscal  2006  (when  and if such  awards  are paid to other
Ashland  employees) based solely upon his participation  through the end of
fiscal 2006 and will be eligible  for benefits  from the Ashland  qualified
pension  plan,  the  non-qualified  excess  benefit  pension  plan  and the
non-qualified Supplemental Early Retirement Plan.


                                    -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)


November 14, 2006                /s/ David L. Hausrath
                                -------------------------------------------
                                 David L. Hausrath
                                 Senior Vice President
                                 and General Counsel


                                    -3-
[{"type": "8-K", "sequence": "1", "filename": "form8k.txt", "description": "FORM 8-K", "secsgml_size_bytes": 4616}]
{"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": "061216507"}, "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): November 10, 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 5.02.  Departure of Directors or Principal Officers;
            Election of Directors;
            Appointment of Principal Officers;
            Compensatory Arrangements of Certain Officers

     Ashland  Inc.   ("Ashland")  entered  into  a  letter  agreement  (the
"Agreement") with Gary A. Cappeline, which became effective on November 10,
2006.  The  Agreement   supersedes  the  previously   disclosed   executive
employment agreement between Mr. Cappeline and Ashland. This Agreement sets
forth terms to be included in a Separation  Agreement  and General  Release
(the  "Separation  Agreement")  to be  executed  upon his  retirement  from
Ashland on or before March 31, 2007 (the "Release  Date").  The  Separation
Agreement  will provide for a lump sum payment  equivalent  to 24 months of
base  pay,  plus  interest,  to be paid on or about  the  first  day of the
seventh  calendar  month  following  the  month in which his  Release  Date
occurs.  If Mr.  Cappeline  resigns from Ashland before March 31, 2007, the
total  additional  base pay that would have been earned  through  that date
will be added to his lump sum payment.  The Separation  Agreement will also
include a general  release of Ashland  and a two-year  non-competition  and
non-solicitation restriction.

     Mr. Cappeline's  participation in most of Ashland's benefit plans will
end at the Release Date, and his restricted stock,  stock options and stock
appreciation  rights  will vest on the Release  Date.  Mr.  Cappeline  will
receive a prorated  portion of any LTIP Awards for the performance  periods
which  include  fiscal  2006  (when  and if such  awards  are paid to other
Ashland  employees) based solely upon his participation  through the end of
fiscal 2006 and will be eligible  for benefits  from the Ashland  qualified
pension  plan,  the  non-qualified  excess  benefit  pension  plan  and the
non-qualified Supplemental Early Retirement Plan.

                                    -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)

November 14, 2006                /s/ David L. Hausrath
                                -------------------------------------------
                                 David L. Hausrath
                                 Senior Vice President
                                 and General Counsel

                                    -3-