Common use of Automatic Transfer Clause in Contracts

Automatic Transfer. The Shares shall be deemed to have been transferred to Successor Shareholder, without further action by Shareholder, immediately upon the occurrence of any Transfer Event; provided, however, that until the designation of Successor Shareholder has been made effective pursuant to Section 11 below, Shareholder shall continue to hold the Shares in trust for the benefit of Successor Shareholder, subject to the limitations imposed by Section 10.3 below.