Correct. The black wire at the solenoid is hot with the key on. The yellow/red wire is grounded to the bars when you push the start button to complete the circuit.
Stu
Maybe, Stu - if he has a "lights always on" type, the solenoid connections are switched.
A CL K4 just might be that type, as it's after the change to a larger headlight too.
The handlebar button simultaneously shuts off the headlight and
sends 12 volts to the solenoid, which is grounded on the other side.
The solenoid doesn't care which side is which, it's just a relay.
In that case, he'd just plug the other side of the solenoid to any convenient ground.
If it's the older type with a lights off position, then it would be a Stu outlined.