there is a 3rd wire coming out of the front side of the engine (Kohler 321s 14 hp ) It is coming from the same general area where the 2 wires in the sleeve that go to the regulator....kind of cream colored like the reg. wires but is coming out of the opposite side of the engine from where the reg. wires come out . It has a spade end on it that isn`t factory. I can`t really see where it ends even after pulling the shrouds around the cylinder head. It is between the block and the backside of the front flywheel shroud about halfway to the top of engine. I don`t remember if it was plugged into any thing on the dash wiring or not.....it was such a mess.
I think I saw in some of the diagrams one of the magnet rings, one unit that had 3 wires but it was for an electronic ignition system...mine is points. I can`t find that diagram now.....I`ve looked at so many pages in a bunch of places.