Those who state that the options given up are basically nothing are IMHO incorrect. 5.6 million of those options averaged $2.70 per share. That's out of the money, but not that much out of the money and removes a big overhang. Had the company granted 5.6 million $2.70 options to insiders, those same posters would be claiming that insiders were diluting the equity and feathering their own nests at the expense of the regular shareholders. You can't have it both ways; giving up these options was a big positive for the stock.
Also, nominal, as pointed out, means basically token. It's probably one dollar. The lawyers do this so that the options surrender constitutes a legally binding transaction since there is consideration contributed by both parties to it.