holding options on take-over?

I posted this in the General section a couple of days back - zero response so far.

"G'day folks,
I'm looking for information relating to the holding of options when/if the company in question becomes an acquisition target.
What is the status of option holders under such a circumstance?

Thanks in advance for any assistance."

There's evidently a great deal of stockmarket experience within the ranks of PEN holders; I'd be most obliged for some assistance in understanding how a take-over might affect PENOC holders.

Assuming there's a bid from A.N. Other company, and it's supported by the management.
Do options holders have any status on the company's SH registry?
Would you have to first convert to heads to then be able to sell to the bidder?
Is there always the opportunity to do so if needed, and if you wish to do so?

Some other thoughts: if the option is "out of the money" following the acquisition offer, then its value immediately becomes zero to the rest of the market....who would spend more than it's worth to buy and then have to exercise it????
The holder of the option could only minimise their loss by exercising it, assuming they paid a fair amount relative to the exercise price.

On the other hand if the option is "in the money", then it stands to reason the value would immediately escalate accordingly, so the usual leverage argument is in play.

Now in the case of PEN being acquired, presumably it might be for something of the order of 12-15c if that were to occur in the shorter term. If your PENOC cost you 12c on average (1Q2011), you'd have to spend the 3c just to cover your investment outlay (never mind time value), they'd be worthless to anyone else.

Thoughts/help appreciated.

Cheers