Indeed to the latter bit. I'm completely okay with it; otherwise I wouldn't have signed the contract. Kind of irritating that someone downvoted me too.

Thanks to the good Samaritan who gave my point back :)

Also, it's totally reasonable for some companies to have restrictions like this. At my company, for example, the primary business is some really smart math guys coming up with market models. By programming these models, a programmer will get algorithms and ideas which belong to the company in their mind. Depending on the nature of a personal/open source project, one could even inadvertently use the company's ideas--putting the company's property out in the open and potentially benefiting competitors.