Management Change/Compensation (Form 8-K)

Item 5.02 Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.

On December 26, 2025, the Board of Directors (the "Board") ofBlue Water Acquisition Corp. III, a Cayman Islands exempted company (the "Company"), approved the payment by the Company of a monthly advisory fee of $15,000 payable to the Company's Chief Executive Officer, Kevin McGurn, in connection with identifying, investigating, negotiating and completing the Company's initial business combination and related matters. The advisory fee is effective as of December 2025 and will continue on a monthly basis until the earlier of (i) the closing and completion of the Company's initial business combination and (ii) the liquidation of the Company.