WebEnabled hosting Terms of Service clause explained for developers selling applications

There is a clause within the WebEnabled Terms of Service that has brought up some question:

You hereby grant WebEnabled, WebEnabled’s affiliates, and WebEnabled’s partners a worldwide, irrevocable, royalty-free, nonexclusive,sublicensable license to display, transfer, transmit Your Content and subsequent versions of Your Content for the purposes of displaying Your Content on WebEnabled’s sites to you and to those parties you have given access to. By choosing to mark Your Content for sale or for free distribution, you further grant WebEnabled, WebEnabled’s affiliates,and WebEnabled’s partners a worldwide, irrevocable, royalty-free,nonexclusive, sublicensable license to use, reproduce, create derivative works of, distribute, publicly display, transfer, transmit,distribute, and publish Your Content and subsequent versions of Your Content for the purposes of (i) displaying Your Content on WebEnabled’s sites, (ii) distributing Your Content, either electronically or via other media, to users seeking to download or otherwise acquire it,and/or (iii) making Your Content accessible by end users, for a charge.This license shall apply to the distribution and the storage of Your Content in any form, medium, or technology now known or later developed.

There are two scenarios for applications built using the WebEnabled platform. Each explains the purpose of the clause:

  1. You are building applications that will be sold directly to customers. In this case the second part of the clause does not apply to you as it is intended to apply to those who wish to sell their website design to others who might want to purchase that design.
  2. You are intending to use WebEnabled to sell clones/copies of your applications through the WebEnabled system/marketplace. We intend the second part of the terms description to apply to those who wish to use WebEnabled as a facilitator of the transaction (ie middleman) and therefore we would need the protections as listed, since we'd be handling/fulfilling the "sale" of the website design. If you are not selling clones of your website designs, but simply using WebEnabled as a hosting platform, and handling the sales of whatever items yourself, then this language doesn't apply.