Material Agreement (Form 8-K)

Indemnity Agreement

On January 21, 2026, the Board of Directors of Blue Water Acquisition Corp. III (the "Company") approved a new form of Indemnity Agreement (the "Indemnity Agreement") to be entered into with the Company's directors and officers (each, an "Indemnitee") who were appointed on November 25, 2025. The Indemnity Agreement supersedes and replaces the previous form of indemnity agreement filed as Exhibit 10.6 to the Company's Form 8-K filed on June 12, 2025, and to which the Company's prior directors and officers, all of whom resigned on November 25, 2025, were parties. The Company's directors and officers who were appointed on November 25, 2025, were never party to such previous form of indemnity agreement, and instead, will only be a party to the Indemnity Agreement.

Pursuant to the Indemnity Agreement, the Company will, among other things, indemnify, hold harmless and exonerate each Indemnitee to the fullest extent permitted by applicable law and the Company's amended and restated memorandum and articles of association (the "A&R Memorandum and Articles") if the Indemnitee becomes involved in certain claims, proceedings or investigations by reason of the Indemnitee's service to and activities on behalf of the Company. The Indemnity Agreement also provides for the advancement of expenses (to the fullest extent not prohibited by Cayman Islands or Delaware law, whichever is more favorable to the Indemnitee) and establishes procedures, as well as qualifications and limitations, that will apply to claims for indemnification thereunder, subject to the Indemnity Agreement's exclusions. Each Indemnity Agreement is intended to provide contractual rights that supplement and are in furtherance of the indemnification provided in the Company's A&R Memorandum and Articles and applicable law.

The foregoing description of the Indemnity Agreement does not purport to be complete and is qualified in its entirety by reference to the full text of the Indemnity Agreement, which is filed hereto as Exhibit 10.1 and which is incorporated herein by reference.