Upgrading to latest version

I have a few questions before I update BeTheme...
1. I saw on TF that you instructed to remove not overwrite the BeTheme folder for this update - I do need to deactivate BeTheme in admin before doing this? 
2. Once I have uploaded the new folder, do I now need to reactivate it in admin?
Will I need to reimport demo data? 
3. And finally, by uploading a new folder will I lose my custom changes (no changes to core files, but custom css, colors, etc.)

Thank you.

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