I have a page in which I am loading a user control dynamically as follows:

Default.aspx:

    <cc1:ToolkitScriptManager ID="ToolkitScriptManager1" runat="server">
    </cc1:ToolkitScriptManager>

    <asp:PlaceHolder ID="PlaceHolder1" runat="server"></asp:PlaceHolder>

Default.aspx.cs:

    protected void Page_Load(object sender, EventArgs e)
    {
        var ctrl = LoadControl("~/UserCtrl1.ascx");
        ctrl.ID = "ucUserCtrl1";
        PlaceHolder1.Controls.Add(ctrl);
    }

Below is the code for UserCtrl1.ascx

<asp:Label ID="Label1" runat="server"></asp:Label>
<asp:Button ID="Button1" runat="server" Text="Button1" OnClick="Button1_Click" />
<br />
<asp:PlaceHolder ID="PlaceHolder2" runat="server"></asp:PlaceHolder>

I am dynamically loading another user control when the Button1 is clicked

UserCtrl1.ascx.cs

    protected void Button1_Click(object sender, EventArgs e)
    {
        Label1.Text = "UserControl - 1 button clicked!";

        var ctrl = LoadControl("~/UserCtrl2.ascx");
        ctrl.ID = "ucUserCtrl2";
        PlaceHolder2.Controls.Add(ctrl);
    }

Below is the markup for UserCtrl2.ascx

<asp:UpdatePanel ID="UpdatePanel1" runat="server" UpdateMode="Conditional">
    <ContentTemplate>
        <asp:Label ID="Label2" runat="server"></asp:Label>
        <asp:Button ID="Button2" runat="server" Text="Button2" OnClick="Button2_Click" />
    </ContentTemplate>
</asp:UpdatePanel>

UserCtrl2.ascx.cs

    protected void Button2_Click(object sender, EventArgs e)
    {
        Label2.Text = "UserControl - 2 button clicked!";
    }

After the page loads when I click the Button1 in UserCtrl1 the click event fires and I am able to see the Label1 text. It also properly loads the UserCtrl2, but when I click the Button2 in UserCtrl2 the click event dosent fire and even worse when I click the Button2 twice the UserCtrl2 control dissappears from the page. How can I fix this?