Out of place patching from 11.2.0.3.4 to 11.2.0.3.6

how does Out of  place patching work?

For example 2 oracle homes:-

exisiting home  11.2.0.3   - CPU patch  Oct 2012  11.2.0.3.4   - database are currently at   11.2.0.3.4 abnd would like to patch them to 11.2.0.3.6, so I have created a new oracle home  11.2.0.3   - CPU patch  Apr 2013 11.2.0.3.6

How do I  bring database from patch level  11.2.0.3.4 to  11.2.0.3.6?

DO I

startup each database in normal mode

startup

then run  for each database

catbundle.sql PSU APPLY as in the Patch doc

OR

do starup each database in upgrade mode

startup upgrade

then run for each database

catupgrd.sql

then run

catupst.sql

catbundle.sql PSU APPLY as in the Patch doc