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http://images.akamai.steamusercontent.com/ugc/433824396123486680/0A6D61C746960B0021446E11EB8321F66F52FA19/
And no, it wasn't a special event. He's just a random spawn. A lot of the time, probably most of the time, he won't be there. So if you want to do that mission, you just have to keep coming back to Lair until you see his "!" on the map. When he does show up, it's always in that hall. And then once you buy the amulet or hit him, you won't see him again in that playthrough with that character (unless you reset UVHM and start it over).
As for what the amulet does, there have been a lot of theories, but, AFAIK, no one has ever found any significant effect. There apparently are some visual effects if more than one person in co-op has it equipped, but they're apparently strictly visual and don't affect the gameplay.
http://borderlands.wikia.com/wiki/Mysterious_Amulet