Read rule #3 - can only use it for non-unique models.
This is probably one rule that will keep me from ever trying to collect a warlord army. I don't get to play often, once every couple of months, and it is usually at events held at the asylum when I do. There are too many uniques and warlords that I would like to use to fit my theme or because I like the concept but I do not like the model and would rather use what I like from the reaper line.
In general I really dislike the whole "name the characters" idea. I want to select the name, model, and background for my forces myself. Not play reaper's designers ideas of characters. I have no problems using their stat lines and even force composition but do not appreciate being told what model I have to use and feeling like they are in control of the story and background of my army, not me.
I think warlord is a fun skirmish level game but it is very unlikely that I will buy any warlord mini's to build an army with the current restrictions on proxy, so I doubt I will be picking this game up. Unless the local Asylum hosted events officially do away with rule #3.
A current avid CAV player