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 1, 2005

                                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       41012-0391
          (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 2230.425)
[  ]     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))


<PAGE>


Item 1.01.  Entry into a Material Definitive Agreement

     On November 1, 2005, the Personnel and Compensation  Committee (the "P
& C  Committee")  of the Board of  Directors  of Ashland  Inc.  ("Ashland")
approved  performance  hurdle,  target and maximum objectives for incentive
compensation ("IC") awards for fiscal year 2006, and performance objectives
for the 2006 - 2008 Performance Period for the Long-Term  Incentive Program
("LTIP"),  pursuant to the Amended and Restated Ashland Inc. Incentive Plan
(the "Incentive Plan").

     For fiscal 2006,  objectives  for IC payments under the Incentive Plan
were  established  by the P & C  Committee  as  Ashland  operating  income,
division  operating  income and cash flow.  Financial  weightings  of these
objectives  will  vary  depending  upon an  individual  employee's  role at
Ashland.

     The P & C Committee  also  established  the following  objectives  and
corresponding  weighting for LTIP payments under the Incentive Plan for the
2006 - 2008 Performance Period:

     o  Executive  Committee  (excludes the Chemical Sector Chief Operating
        Officer)
        -  50% weighting on Chemical Sector Return on Investment
        -  50% weighting on  Transportation  Construction  Sector Return on
           Investment
     o  Chemical  Sector and  resource  group  participants  (includes  the
        Chemical  Sector  Chief  Operating  Officer)
        -  75%  weighting  on Chemical  Sector  Return on  Investment
        -  25% weighting on  Transportation  Construction  Sector Return on
           Investment
     o  Transportation  Construction Sector and resource group participants
        -  75% weighting on  Transportation  Construction  Sector Return on
           Investment
        -  25% weighting on Chemical Sector Return on Investment

Item 1.02.  Termination of a Material Definitive Agreement

     Effective  November  3,  2005,  Ashland  terminated  the $300  Million
364-Day  Revolving Credit  Agreement  Ashland had entered into on March 21,
2005,  with  The  Bank of Nova  Scotia  as Sole  Lead  Arranger,  Sole  and
Exclusive  Book  Manager,  Administrative  Agent  and  Swing  Line  Lender;
SunTrust Bank and JP Morgan Chase Bank, N.A., as Co-Syndication Agents; The
Royal Bank of Scotland PLC and Citibank,  N.A., as Co-Documentation Agents;
and the Lenders  Signatory  Thereto  (the  "Revolver").  The Revolver is no
longer  necessary  for  Ashland's  financing  needs.  There  were no  early
termination penalties incurred by Ashland.

<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)





Date:  November 4, 2005           /s/ J. Marvin Quin
                                 --------------------------------------------
                                 Name:     J. Marvin Quin
                                 Title:    Senior Vice President and
                                           Chief Financial Officer
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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": "051178665"}, "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 1, 2005

                                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       41012-0391
          (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 2230.425)
[  ]     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))
Item 1.01.  Entry into a Material Definitive Agreement

     On November 1, 2005, the Personnel and Compensation  Committee (the "P
& C  Committee")  of the Board of  Directors  of Ashland  Inc.  ("Ashland")
approved  performance  hurdle,  target and maximum objectives for incentive
compensation ("IC") awards for fiscal year 2006, and performance objectives
for the 2006 - 2008 Performance Period for the Long-Term  Incentive Program
("LTIP"),  pursuant to the Amended and Restated Ashland Inc. Incentive Plan
(the "Incentive Plan").

     For fiscal 2006,  objectives  for IC payments under the Incentive Plan
were  established  by the P & C  Committee  as  Ashland  operating  income,
division  operating  income and cash flow.  Financial  weightings  of these
objectives  will  vary  depending  upon an  individual  employee's  role at
Ashland.

     The P & C Committee  also  established  the following  objectives  and
corresponding  weighting for LTIP payments under the Incentive Plan for the
2006 - 2008 Performance Period:

     o  Executive  Committee  (excludes the Chemical Sector Chief Operating
        Officer)
        -  50% weighting on Chemical Sector Return on Investment
        -  50% weighting on  Transportation  Construction  Sector Return on
           Investment
     o  Chemical  Sector and  resource  group  participants  (includes  the
        Chemical  Sector  Chief  Operating  Officer)
        -  75%  weighting  on Chemical  Sector  Return on  Investment
        -  25% weighting on  Transportation  Construction  Sector Return on
           Investment
     o  Transportation  Construction Sector and resource group participants
        -  75% weighting on  Transportation  Construction  Sector Return on
           Investment
        -  25% weighting on Chemical Sector Return on Investment

Item 1.02.  Termination of a Material Definitive Agreement

     Effective  November  3,  2005,  Ashland  terminated  the $300  Million
364-Day  Revolving Credit  Agreement  Ashland had entered into on March 21,
2005,  with  The  Bank of Nova  Scotia  as Sole  Lead  Arranger,  Sole  and
Exclusive  Book  Manager,  Administrative  Agent  and  Swing  Line  Lender;
SunTrust Bank and JP Morgan Chase Bank, N.A., as Co-Syndication Agents; The
Royal Bank of Scotland PLC and Citibank,  N.A., as Co-Documentation Agents;
and the Lenders  Signatory  Thereto  (the  "Revolver").  The Revolver is no
longer  necessary  for  Ashland's  financing  needs.  There  were no  early
termination penalties incurred by Ashland.
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)

Date:  November 4, 2005           /s/ J. Marvin Quin
                                 --------------------------------------------
                                 Name:     J. Marvin Quin
                                 Title:    Senior Vice President and
                                           Chief Financial Officer