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Exhibit 10.518    
    

 
 

CHIRON CORPORATION NOMINATING AND
  CORPORATE GOVERNANCE COMMITTEE CHARTER    
    

 
 

ROLE    
    

        The Nominating and Corporate Governance Committee (the "Committee") of the Board of Directors (the "Board") of Chiron Corporation ("Chiron") has two roles:
(1) the Committee determines the slate of director nominees for election to Chiron's Board and recommends to the Board the individuals to fill vacancies occurring between annual meetings of
stockholders, subject to the requirements of the Governance Agreement, dated as of November 20, 1994, between Chiron and Novartis AG ("Novartis"), as amended (as it may be further amended from
time to time, the "Governance Agreement"); and (2) the Committee develops and recommends to the Board a set of corporate governance principles applicable to Chiron. 

 
 

MEMBERSHIP AND STRUCTURE    
    

        The Committee shall consist of at least three directors. Subject to that minimum number, the number of members shall be determined by reference to
Section 2.03(b)(ii) of the Governance Agreement. A member shall not be an officer or employee of Chiron, each member shall be free of any relationship that, in the determination of the
Board, would interfere with the exercise of independent judgment in carrying out the responsibilities of a director and each member shall otherwise be "independent" and qualified to serve as a member
of the Committee under applicable law and under the rules of the Nasdaq Stock Market, Inc. The Committee shall review at least annually, and upon the occurrence of any significant change, the
qualification and independence of its members, and shall report the result of this review to the full Board. 

        Subject
to the requirements described above with respect to Committee membership, members of the Committee shall be appointed by the Board in accordance with the Governance Agreement.
Committee members shall serve at the pleasure of the Board. The chairperson shall be appointed by the full Board. 

        The
Committee shall meet in person or telephonically at least two times a year, or more frequently when deemed necessary or desirable by the Committee or its chairperson, at such times
and places as the Committee determines. 

 
 

COMMUNICATIONS/REPORTING    
    

        The Committee shall perform or cause to be performed and approved by the Committee annually an evaluation of the performance of the Committee of its role under
this charter, including the duties and responsibilities set forth in Annex A. The evaluation shall include consideration of possible amendments to this charter, including the duties and
responsibilities set forth in Annex A. The performance evaluation may be conducted in such manner as the Committee deems appropriate, and the result and recommendations shall be reported to the Board
by the chairperson or any other member of the Committee. The chairperson shall report in a timely manner on Committee activities to the full Board. 

 
 

EDUCATION    
    

        Chiron is responsible for providing the Committee with educational resources relating to its role and duties and responsibilities, including corporate governance
practices, corporate governance rules and requirements, nominating practices and any other material as may be requested by the Committee. 

 
 

AUTHORITY    
    

        In discharging its roles, duties and responsibilities, the Committee is empowered to cause and direct the investigation of any matter within its role, with full
power to cause independent counsel or other experts or advisors to be retained for this purpose. The Committee may require any officer or employee of Chiron or Chiron's outside lawyers to attend a
meeting of the Committee and to provide
any information requested by the Committee or its member or consultants. The Committee shall have the full authority of the Board to discharge its duties and responsibilities, including the authority
to select, retain, terminate, and approve the compensation and other terms of engagement of search firms or consultants, counsel or other experts or advisors, as the Committee deems appropriate in its
discretion, without seeking approval of the Board or management. The Committee may, in its discretion, delegate all or a portion of its duties and responsibilities to a subcommittee of the Committee.
The Committee shall also have the resources that it deems necessary to discharge its duties and responsibilities. 

 
 

KEY DUTIES AND RESPONSIBILITIES    
    

        The key duties and responsibilities of the Committee in carrying out its roles are delineated in Annex A to the Nominating and Corporate Governance Committee
Charter. Annex A will be reviewed annually, and updated if necessary, to reflect changes in regulatory requirements, authoritative guidance and evolving oversight practices. As the compendium of
Committee duties and responsibilities, Annex A will be considered to be incorporated in, and a part of, this charter. 

 
 

ANNEX A    
    

        The
following are the key duties and responsibilities of the Committee: 

	1.
	To
make recommendations to the Board from time to time as to changes that the Committee believes to be desirable to the size of the Board or any committee thereof.

	2.
	To
identify individuals believed to be qualified to become Board members and to determine the nominees to stand for election as directors at the annual meeting of stockholders or, if
applicable, at a special meeting of stockholders. In nominating candidates the Committee shall take into consideration such factors as it deems appropriate, subject to the terms of the Governance
Agreement. The Committee may consider candidates proposed by management, but is not required to do so. In the case of a vacancy in the office of a director (including a vacancy created by an increase
in the size of the Board but other than a vacancy that Novartis is entitled to fill pursuant to the Governance Agreement), the Committee shall determine a nominee to such vacancy through election by
the Board.

	3.
	To
develop and recommend to the Board standards to be applied in making determinations as to the absence of relationships between Chiron or its subsidiaries and a director which, in
the opinion of the Board, would interfere with the exercise of independent judgment in carrying out the responsibilities of a director ("Director Independence").

	4.
	To
assess and make recommendations to the Board on individual Director Independence in accordance with standards adopted by the Board on a general basis and with respect to specific
issues as and if they arise.

	5.
	In
the case of a director nominee to fill a Board vacancy created by an increase in the size of the Board, make a recommendation to the Board as to the class of directors in which the
individual should serve.

	6.
	Develop
and recommend to the Board a set of corporate governance principles applicable to Chiron, and to review those principles at least once a year.

	7.
	Consider
and recommend to the Board procedures for assessing the effectiveness of corporate governance principles, including evaluation of Board and management corporate governance
processes and performance. 

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Exhibit 10.518

CHIRON CORPORATION NOMINATING AND CORPORATE GOVERNANCE COMMITTEE CHARTER

ROLE

MEMBERSHIP AND STRUCTURE

COMMUNICATIONS/REPORTING

EDUCATION

AUTHORITY

KEY DUTIES AND RESPONSIBILITIES

ANNEX AQuickLinks
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Exhibit 10.528    
    

 
 

NOVARTIS AG
  
    WRITTEN CONSENT AND APPROVAL
  
    Effective as of May 16, 2003    
    

CHANGE IN SIZE OF THE BOARD  

        WHEREAS,
Sections 2.04 (a)(iv) and (v) of that certain Governance Agreement dated as of November 20, 1994 between Chiron Corporation ("Chiron" or the "Company") and
Novartis AG, as amended, requires the approval of Novartis to change the size or composition of the Board of Directors or any committee thereof, and approve any amendment to the Bylaws of the Company; 

        NOW,
THEREFORE, BE IT RESOLVED, that the number of authorized members of the Chiron Board be reduced from twelve (12) to thirteen (13), as described below: 

AMENDMENT OF ARTICLE III, SECTION 3.1 OF THE BYLAWS  

The
first sentence of Article III, Section 3.1 of the Bylaws of the Company is hereby amended to read in its entirety as follows: 

	3.1
	Number, Tenure and Qualification.    The number of directors which shall constitute the whole Board
shall be twelve (12) until such time as the Board, in its sole discretion, shall reduce the number of directors to eleven (11).  

AMENDMENT TO GOVERNANCE AGREEMENT AND FURTHER AMENDMENT TO BYLAWS  

        WHEREAS,
Section 2.04 (b)(iv) of the Governance Agreement also requires the approval of a majority of the Investor Directors to effect any amendment to the Bylaws of the
Company, and the approval of Novartis under Section 2.04(a) (iv), of any change in the size or composition of any committee of the Board; 

        WHEREAS,
the Board, with the consent of Novartis, recently amended Section 3.11 of Chiron's Bylaws in October 2002, to establish a sixth standing committee of the Board,
known as the "Executive Committee", and the Board, with the approval of the Investor Directors at their May 16, 2003 meeting, deemed it appropriate and in the best interests of Chiron to amend
Section 3.11 of the Bylaws and Section 2.03 (b) of the Governance Agreement to abandon the "Executive Committee"; 

        NOW,
THEREFORE, BE IT RESOLVED, that Section 2.03(b) of the Governance Agreement and Section 3.11 of Chiron's Bylaws be amended in substantially the form attached hereto as  Annex 1 and Annex 2, and are hereby approved; 

        IN
CONSIDERATION OF THE FOREGOING, Novartis AG hereby approves the: (i) change in size of Chiron's Board of Directors and corresponding amendment of its Bylaws; and
(ii) abandonment of the Executive Committee of Chiron's Board of Directors, and corresponding amendments to the Governance Agreement with Chiron and Chiron's Bylaws, effective as of
May 16, 2003. 

	 
	 	 
	 	 

	 	 	NOVARTIS AG
	

 	
 	

By:	
 	

/s/ P. RUPPRECHT

	 	 	Its:	 	Peter Rupprecht
 authorized signatory
	

 	
 	

By:	
 	

/s/ BREU

	 	 	Its:	 	CFO

 
 
 

ANNEX 1    
    

 
 

CHIRON CORPORATION
  Governance Agreement Dated November 20, 1994 with Novartis AG    
    

        Section 2.03(b)
of the Governance Agreement dated November 20, 1994 with Novartis AG (the "Governance Agreement") is hereby amended, effective as of May 16, 2003, to
delete subsection 2.03(vi) in its entirety; and 

        Subsection
2.03(vii) is hereby re-designated as subsection 2.03(vi) to read in its entirety, as follows: 

"(vi) such
other committees as the Board of Directors deems necessary or desirable; provided that such committees are established in compliance with the terms of this Agreement." 

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ANNEX 2    
    

 
 

CHIRON CORPORATION
  Bylaws, as amended    
    

Section 3.11
of the Bylaws of Chiron Corporation is hereby amended, effective as of May 16, 2003, to read in its entirety, as follows: 

        3.11    Committees.    Section 2.03 of the Governance Agreement provides that the following committees of the
Board of Directors shall be formed and administered: (i) an Audit Committee; (ii) a Nominating and Corporate Governance Committee; (iii) a Strategic Planning Committee;
(iv) a Compensation Committee; and (v) a Stock Option Plan Administration Committee. Such committees of the Board of Directors shall be formed, maintained and administered in accordance
with the terms of said Section 2.03 of the Governance Agreement, which provisions are incorporated herein and made a part of these Bylaws. All committees of the Board of Directors not
specifically provided for in said Section 2.03 shall be constituted in accordance with Section 2.03(c) of the Governance Agreement. 

3

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Exhibit 10.528

NOVARTIS AG WRITTEN CONSENT AND APPROVAL Effective as of May 16, 2003

ANNEX 1

CHIRON CORPORATION Governance Agreement Dated November 20, 1994 with Novartis AG

ANNEX 2

CHIRON CORPORATION Bylaws, as amended

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