CVS Caremark Corporation (CVS)

    B. Deferred Compensation Plans and Deferred Stock Plan

Executive officers and selected other senior employees may choose to defer compensation once earned and vested into the CVS Caremark Deferred Compensation Plan or the Caremark Rx, Inc. Deferred Compensation Plan (depending on eligibility) and the CVS Caremark Deferred Stock Plan, which are available to all non-store U.S. employees who meet the Internal Revenue Code definition of a “highly compensated employee.” Both deferred compensation plans offer a variety of investment crediting choices, none of which represents an above-market return. Each year, the amount of a participant’s deferred compensation account increases or decreases based on the appreciation and/or depreciation in the value of the investment crediting alternatives selected by the participant. The CVS Caremark Deferred Compensation Plan offers a 5% match on eligible compensation deferred into the plan, offset by any match provided under the qualified defined contribution plan, Future Fund. Under the CVS Caremark Deferred Stock Plan, deferred shares fluctuate in value based on the performance of CVS Caremark stock, further enhancing the

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Company’s focus on stock ownership. The individual contributions of Messrs. Ryan, Rickard, Bodine, McLure, Merlo and Sgarro during fiscal 2008 to the deferred compensation plans and the deferred stock plan, including earnings on those contributions, any distributions during 2008 and total account balances as of the end of the fiscal year, are shown in the Nonqualified Deferred Compensation Table on page 42.