Chad,

 

You may also install and use the Software on an unlimited number of developer workstations (but not on a development server) for use in connection with the same single website host name when accessed by the http://localhost/Webapplication;  

However if the web server is accessed using another hostname (i.e. it is a shared server) then you need to buy a copy for it. This means each of your development servers and test servers must have its own license.