We introduce a new jet algorithm called XCone, for eXclusive Cone, which is based on minimizing the event shape N -jettiness. Because N -jettiness partitions every event into N jet regions and a beam region, XCone is an exclusive jet algorithm that always returns a fixed number of jets. We use a new “conical geometric” measure for which well-separated jets are bounded by circles of radius R in the rapidity-azimuth plane, while overlapping jet regions automatically form nearest-neighbor “clover jets”. This avoids the split/merge criteria needed in inclusive cone algorithms. A key feature of XCone is that it smoothly transitions between the resolved regime where the N signal jets of interest are well separated and the boosted regime where they overlap. The returned value of N -jettiness also provides a quality criterion of how N -jet-like the event looks. We also discuss the N -jettiness factorization theorems that occur for various jet measures, which can be used to compute the associated exclusive N -jet cross sections. In a companion paper [1], the physics potential of XCone is demonstrated using the examples of dijet resonances, Higgs decays to bottom quarks, and all-hadronic top pairs.United States. Department of Energy (Offices of Nuclear and Particle Physics Contracts DE-SC00012567 and DE-SC0011090)Simons Foundation (Investigator grant 327942)United States. Department of Energy (Early Career research program DE-SC0006389)Alfred P. Sloan Foundation (Sloan Research Fellowship)Massachusetts Institute of Technology. Undergraduate Research Opportunities Program (Paul E. Gray Endowed Fund