Good for you for READING the contract!!!
That’s what got us into the housing crisis, no one reads their contracts!
I agree with the other posters. How can they force you to not work for a competitor? You are there to get experience in your field. They are not paying you AND they don’t want you to work anywhere else? I know you need an internship, but DANG IT, they already are controlling your future???
I agree, tell them you’ve READ the contract and are concerned that the company is saying you wouldn’t be able to work anywhere else for 10 years. If they say its STANDARD and procedural, you can say, “but once I sign it, it isn’t standard anymore”. I agree with @suzy100, say that you are more than willing to sign a non-disclosure. If they really want you, they will accommodate you; and it sounds like they should want a person who is smart enough to read a contract!