It’s an agreement in which a party (individuals or companies) undertakes not to release or disclose certain information received from another party (usually siting at the other side of the negotiation table). The release of sensitive information will usually occur during a negotiation process or during a business relation between 2 or more parties.

It’s very common when sitting to the table to negotiate a service, supply or distribution contract, between a Startup and a big company, that the latter requires to include in the agreement provisions referring to exclusivity in the sale, service or distribution from the Startup.