i'm pretty sure that what you have there is either the regulator or the cdi box.
white/red wire coming from coils to box = cdi unit.
2 yellows and a black wire connecting to lights and junk from the box = voltage regulator
Both of which i just drilled holes anywhere they'd fit in the sub frame and slapped em on there, no problem.I think the only grounding that occurs is that one black wire you bolt to the subframe (mines has always been mounted near the coil,) and my wiring diagram shows that all the grounds on the bike are wired to that.
And for the record, the lights and ignition are totally separate on Kinetics. you can take all the lights off completely and the bike'll still run, you just need the wires on the right side of the bike for spark.