That means: a \hinline{Tree} can either be a \hinline{Leaf} or an internal \hinline{Node} with two sub-trees. If we want to create a \hinline{Leaf}, we have to pass the constructor a \hinline{Char}. If we want to create a \hinline{Node}, we have to pass 3 arguments, in order: another \hinline{Tree}, an \hinline{Int} and yet another \hinline{Tree}.\\
So we can save information in the leafs (\hinline{Char}) and in the internal nodes (\hinline{Int}).\\