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In this 365 Ninja Tip tutorial for Word 2013, the presenter demonstrates how to add or remove a watermark from a document. Using an example document that features a "Sample" watermark, they navigate to the Design tab in the ribbon and find the watermark option in the Page Background section. To remove the watermark, they utilize the dropdown menu. Users can also choose from prefilled options like "Confidential" or "Draft," or create a custom watermark with their own text or images, adjusting font and color as desired. After applying a new watermark, it appears in the document, illustrating the ease of customization.