Hi Shuwar. Great questions.
1) I don't remember the name of the card either, but I know the card you are referring to. The card that calls the enemy from the orange combat deck is discarded according to the text on that card. If you do not defeat the enemy, you will then be left with no trophies. You do gain the orange card as a trophy though if you defeat the enemy, as well as any rewards listed at the bottom of the enemy card.
Essentially, the card gives you an easier battle to take on, with the normal rewards the battle would bring you, and no other ones.
2) The Lore tokens reduce the max HP. He does not start with damage tokens on him. If you have 5 lore tokens, then he will have 10 HP and can only heal up to 10 and not to 15.
Hope this answers your questions.