After the 5 seconds pass, you will gain an increase to speed and defense for as long as you do not attack your opponent. (This includes physical, mental and spiritual attacks.)
If your opponent is absolutely set on killing you, and their mind wont be changed through dialogue alone, then this perk does not activate.
Sneak attacks aimed at you also bypass this effect. Though after a failed sneak attack upon you, you are able to activate this perk if you did not launch a counter-attack.
You can turn this perk off if you desire.