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In this 365 Ninja Tip tutorial, the presenter explains how to add or remove a watermark in Word 2013. To remove a watermark, navigate to the Design tab in the ribbon and find the Watermark option in the Page Background section. By clicking the drop-down menu, the watermark can be easily removed. Users can also select from pre-defined watermarks such as "Confidential," "Draft," "Sample," or "Do Not Copy," or create a custom watermark using text or images. Customization options include changing font and color. After applying the desired watermark, it will appear in the document as specified.