This script is specific for use with Cryengine 3. So if you don't intend to use this with Cryengine 3, this script will not work and be of no use for you.
It creates all the appropriate layers for the lods and main object, creates the dummy and linking the mesh to the dummy. Creating the proper material, submaterials (4 by default) for the model and the proxies, assigning the crytek shader and the physicalize (no draw) to the proxies.
Left for you is assigning the proper IDs manually to the correct submaterials (if needed).