Commercial distribution of RHEL and clones (i.e. Alma)

I am trying to clear up something that was told to me by a Red Hat sales rep.
Hypothetical situation - A company is currently distributing a software installer that includes a RHEL clone (CentOS/Alma). For certain customers, they would like to distribute with actual RHEL. This would be at the self-support license level.

1) Is it legal by way of the licensing agreement for the company to sell products that include either RHEL or a clone assuming the licenses are properly acquired?
2) Is there anything in the licensing agreement that would force the company to go back and convert any existing systems (mix of CentOS 7/8 and Alma 8/9) to full RHEL licenses to be in compliance?

Sales rep told me that the customer would need to convert the entire install base (1000's of systems) to RHEL and could no longer distribute with anything but RHEL.

Thank you.