I am trying to create a 2D array of Point of distorted checker board like this photo:
Click Here

Starting from the mid point, I think there should be some kind of sin and cos algorithm depending on x&y distance between each vertex and the mid point but I don't know how to calculate that :S

Can anyone give me the algorithm to calculated distorted verteice coordinates?

Look for algorithms that draw coordinates of a sphere. Although your picture suggests some correction on that.