teather

The tether switch must be closed when the cable is pulled. Just wire it across the key plug.

This is what is referred to as a "normally open" switch. Here is an install guide for a watercraft lanyard that illustrates how it works: http://www.exhaustgas.com/docserver/Docs/332.pdf

Edit: I read that install guide after I posted it and I realized MSD has made this more confusing than it really is, generally the "normal" state of a device is what it is doing under normal operation I.e. rider and lanyard attached, vehicle running. MSD has this backwards but at least they are specific about it, like Blaaster said "the switch must make a circuit when pulled" (effectively touching the wires together). If you are going to retain your ignition switch you must wire the lanyard in parallel before the ignition to make sure the quad can't be started without the key. Sorry if this is confusing, just let me know if you need clarification on anything.
 
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