The switch has 3 leads on it - one goes to the battery, one goes to the receiver, and one is a charge jack for charging the battery.

The hot (red) wire from the ESC to the Rx can be removed from the male plug. The three wires are clipped in, and you can lift one of the clips with a hobby knife and remove the wire. The ESC then only has the responsibility of controlling electricity to the motor (throttle).