What is the proper procedure for repairing a localized asphalt pothole prior to parking lot sealcoating?

1. Fill the hole with loose dirt and spray paint over the top surface.
2. Pour liquid sealcoat directly into the pothole until it fills to the top surface.
3. Place loose gravel in the hole and compact it with a hand shovel blade.
4. Saw-cut square edges, remove bad asphalt, tack coat, fill HMA, and compact.