So... the additional term is understandable, and sane. You don't want bad forks to break your server. Though it could've been largely left out of this: You could've simply stated that forks are not authorized to use the central server as terms of the server itself, and left the code under an approved open source license.
But the weird bit here is that the license file can only be used in accordance with obeying this software's license... does that mean that the "Lightly-Modified" Apache license is not, in itself, open source? Like, is this meant to read as "Nobody else may release their own software under this license"?