is not entitled resell or distribute the software, but is entitled to modify and extend the application. It will only run on the specified server contained in the license key. So as I see it if they add a GPL JAVA JAR to the code they could develop any links to that library themselves without issue. The question is that if they ask me to develop the code and charge them for the service does my client or myself violate the GPL license. From the discussion in Stackoverflow it says "Finally, The GPL applies only when you distribute or convey a program. You can do whatever you want to your software on your computer and you are under no obligation to share it with other users of your computer (or server, or whatever). " 

So if I write some code and send it to them is that considered distributing or conveying? 

Thanks Howard

I understand if I make the JAR a part of my distribution I would be subject to the GPL requirements. I guess the comparable would be that the client installs the JAR on their site and I come on line and work directly on their site there clearly would be no conflict. If I develop it in-house then copy it to their site that would be functionally the same as working directly on their site.