Geometry is rendered by vertices (well by pixels but those are computed from vertices). Normal of vertex affects hove much light will be reflected by that vertex in to which direction so normals influence hove your model will be lit by light.
Your vertex E should (but don't have to) point up: vector(0,1,0). Its up to you to decide normal vector.
A normal vector is perpendicular to the polygon.
Not necessarily, if you want sharp edges of polygoons than yes, vertex normal should be perpendicular to the polygoon it belongs. If you however want your mesh to look smooth, normal should be the same for all vetrices which meet in one spot (like your E) even if they belongs to different polygoons. Normal of those vertices should be kind of average of what their normals would be if they were perpendicular to their polygoons.
Also often vertices are shared by several polygoons, In which case you have no other possibility then made it average.