SDCL § 53-9-10.1: Competition limitation--Business entity--Sale or transfer of ownership--Limits.

In any governing document of a business entity, or as part of a contract for the purchase, sale, or transfer of an ownership interest in the entity, the parties may agree that an owner, after the transfer of the interest in the entity, may not engage, directly or indirectly, in the same or similar type of business conducted by the entity during the owner's period of ownership, within the specified geographic area in which the entity conducts business, for a period not exceeding three years from the date of transfer.