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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 an existing watermark, navigate to the "Design" tab on the ribbon and find the "Watermark" option in the "Page Background" section. Clicking the drop-down menu allows you to remove the watermark or choose from prefilled options like "Confidential," "Draft," "Sample," or "Do Not Copy." Additionally, users can create a custom watermark by adding text or a picture and modifying the font or color. After making changes, click "Apply" to see the new watermark reflected in the document.