FORMATION OF PEPSI COLA CORPORATION

Roy C. Megargel, a Wall Street broker, bought the Pepsi trademark, business and good will from
Craven Holding Corporation for $35,000, forming the Pepsi-Cola Corporation. In 1928, after
five continuous losing years, Megargel reorganized his company as the National Pepsi-Cola
Company. In 1931, U.S. District Court for Eastern District Virginia declared the National PepsiCola Company bankrupt, the second bankruptcy in Pepsi-Cola history.