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In Chapter 1 as you complete the quests for the henchman, each one will reward you with a magic item of some kind (like an amulet).

In Chapter 2 it seems that you can again adventure with the henchman.

Couple of questions :
1. Do the henchman give new quests in chapter 2 (and later chapters) ?
2. Do you need to keep the magic items that the henchman give you in Chapter 1 ? Do they reward you with new magic items ? Somehow upgrade the Chapter 1 items ?

yes you get more quests in later chapters and you don't keep the item that they give you, but rather get an impoved version of the same item.