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I am SF Partner and I have managed package (second-gen) without security review. I made contract to deliver my managed package to subscriber who did not have SF before. He needs 10 licenses in order to use my package. I created production SF org for him and installed package. I configured 10 licenses in License Management App. Now I need to arrange user licenses for 10 users able to login to SF and use my package. My understanding is that I as SF Partner can provide for him OEM Embedded User Licenses following way. I will create order in Channel Order App for 1x OEM Embedded Admin User license and 10x OEM Embedded User license. If SF will receive my order then SF will set these OEM licenses available for me in destination SF org I created before for my package customer. Is it working this way? I am not able to find on net any summary of steps to do.

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You've skipped a few steps. You must first become an OEM partner, which includes agreeing to the OEM-specific contracts. Next, your managed package should be security reviewed. After that, you can set up Trialforce templates, which includes your app and your OEM-specific licenses that you can give to the admin, as well as assigning licenses to the org. What you really need to do is to log in to the partner portal and start the process of becoming an OEM partner.

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