CDC CEO offered cash bonus to prevent exercise of 3.75% convertible notes put option

By Angela McDaniels

Tacoma, Wash., April 30 - CDC Corp. chief executive officer Peter Yip will receive a $175,000 cash bonus if the Nov. 10, 2009 put option under the company's 3.75% convertible exchangeable debentures due 2011 is avoided or eliminated, according to a 6-K filing with the Securities and Exchange Commission.

Yip would receive the payment if the entire $168 million principal balance of the convertibles were paid, modified or discharged outside of a proceeding seeking protection against creditors.

The company also offered Yip a $175,000 cash bonus for saving at least $18.7 million of interest charges through repurchases of the convertibles. The CEO received that payment on March 12 in connection with the repurchase of 36.6% of the convertibles at less than par.

CDC is a Hong Kong-based provider of enterprise software, online games and internet and media services.

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