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sed is still not required...

while read LINE
do
cat <<EOF
$LINE
send_notification: F \n
notification_msg: "Process Has Failed "\n
notification_emailaddress: 720394@tmomail.net
EOF
done <...

It works fine here:

$ awk -f warnlog.awk REGEX="FAILED" - <<EOF
CAUAJM_I_50322 Checking Syntax for Inserting/Updating job: q_pm_d_bifind_curr_n2
CAUAJM_E_50442 Invalid attribute value for...

If you want unique records from the second file that are not in the reference file:
egrep -v -f Reference_File Second_File | sort -u