It's nice to hear about a situation closer to most startup outcomes. When Matthew notes that someone sent him the acquisition terms and the founders made out well while line level / low level managers basically got nice severances, it's something everyone here should keep in mind. It's great if founders make out well as long as everyone else does too; it's when those outcomes diverge that it rankles.
If a potential employer tries to put nonsense like a 2-year noncompete -- during which of course they don't pay you -- plus ownership of side projects into your contract, it's a sign you're dealing with assholes. If you can, you should just walk away. Many of us live in CA, so some of this can't happen, but a startup here tried something similar: their 16 page (!!!) employment contract specified that if I used my personal media device or laptop for any business purpose, they had the unlimited right to inspect/search them on demand. By my reading, even something as tenuously related as two factor auth on work gmail being sent to my personal cell, or taking a business call on my cell would have counted. The founder tried to blame it on boilerplate their lawyers inserted; he couldn't even take responsibility for what was, after all, the contract he was asking me to sign. I walked away. Read those contracts.