<PAGE>

                                                               EXHIBIT 10.29 (C)
 
                                 REVOLVING NOTE


$9,000,000                San Antonio, Texas                   December 12, 1996


          FOR VALUE RECEIVED, TRAVIS BOATS & MOTORS, INC., a Texas corporation,
TRAVIS SNOWDEN MARINE, INC., a Texas corporation, TRAVIS BOATING CENTER
ARLINGTON, INC., a Texas corporation, FALCON MARINE, INC., a Texas corporation,
FALCON MARINE ABILENE, INC., a Texas corporation, TRAVIS BOATING CENTER
BEAUMONT, INC., a Texas corporation, TRAVIS BOATS & MOTORS BATON ROUGE, INC., a
Louisiana corporation, TBC ARKANSAS, INC., an Arkansas corporation, TBC
MANAGEMENT, Ltd., a Texas limited partnership, TBC MANAGEMENT, INC., a Delaware
corporation, TRAVIS BOATING CENTER LOUISIANA, INC., a Louisiana corporation,
TRAVIS BOATING CENTER TENNESSEE, INC., a Texas corporation, TRAVIS BOATING
CENTER ALABAMA, INC., a Texas corporation, RED RIVER MARINE ARKANSAS, INC., an
Arkansas corporation, TRAVIS BOATING CENTER LITTLE ROCK, INC., an Arkansas
corporation, TRAVIS BOATING CENTER GEORGIA, INC., a Texas corporation and TRAVIS
BOATING CENTER FLORIDA, INC., a Texas corporation (collectively "Borrowers"),
                                                                 ---------   
hereby, jointly and severally, promise to pay to the order of NATIONSBANK OF
TEXAS, N.A., a national banking association ("Lender"), at the offices of
                                              ------                     
NATIONSBANK OF TEXAS, N.A., a national banking association (the "Agent") at 300
                                                                 -----         
Convent Street, San Antonio, Texas 78205, the principal sum of Nine Million and
No/100 Dollars ($9,000,000.00) (or the unpaid balance of all principal advanced
against this Note, if that amount is less), on or before the Termination Date
for this Note (as established by the Agreement), in lawful money of the United
States of America, together with interest on the unpaid principal balance of
this Note from day to day outstanding, in accordance with the terms and
provisions of the Agreement; provided, however, that in no event shall interest
accrue hereunder at a rate in excess of the Maximum Lawful Rate.  Subject to the
provisions hereof limiting interest to the Maximum Lawful Rate, interest on
Advances shall be computed based on the number of days elapsed and 360-days per
year or in the case of interest accruing at the Maximum Lawful Rate, 365/366
days per year.  Advances of the principal indebtedness evidenced by this Note
shall be made pursuant to the Credit Agreement (as herein defined), which
amounts may be borrowed, repaid and reborrowed as provided in and subject to the
terms of the Credit Agreement.  Each Advance made by Lender to Borrowers
pursuant to the Credit Agreement may be recorded by lender and, with respect to
any transfer hereof, endorsed on the grid attached hereto which is part of this
Note.  Any failure by Lender to endorse the grid attached hereto shall not
impair the obligation of Borrowers to pay any amount due and owing hereunder.

          All capitalized terms used herein, but not specifically defined, shall
have the same meanings set forth in the Agreement.

          Principal and all accrued interest hereunder shall be due and payable
upon the terms and on the dates provided for in the Credit Agreement.
<PAGE>
 
          After maturity of this Note or the occurrence of an Event of Default,
the outstanding principal balance of this Note shall, at the option of the
Required Lenders, bear interest at the Default Rate, as provided in the
Agreement.

          If at any time the Applicable Rate shall be limited to the Maximum
Lawful Rate, any subsequent reductions in the Applicable Rate shall not reduce
the rate of interest on this Note below the Maximum Lawful Rate until the total
amount of interest accrued equals the amount of interest which would have
accrued if the Applicable Rate had at all times been in effect.  In the event
that at maturity (stated or by acceleration), or at the final payment of the
Credit Facility, the total amount of interest paid or accrued on the Credit
Facility is less than the amount of interest which would have accrued if the
Applicable Rate had at all times been in effect with respect thereto, then at
such time, to the extent permitted by law, Borrowers shall pay to Agent, for the
ratable benefit of the Lenders, an amount equal to the difference between (a)
the lesser of the amount of interest which would have accrued if the Applicable
Rate had at all times been in effect and the amount of interest which would have
accrued if the Maximum Lawful Rate had at all times been in effect, and (b) the
amount of interest actually paid on the Credit Facility.

          This Note has been executed and delivered pursuant to the terms of
that certain Revolving Credit Agreement (as the same may be modified, amended,
supplemented, extended or restated from time to time, the "Credit Agreement")
                                                           ----------------  
dated as of December 12, 1996, executed by and among Borrowers, Agent and the
Lenders (which includes the payee of this Note) and is one of the notes defined
therein as a "Note", the terms and provisions of the Credit Agreement related to
              ----                                                              
this Note being incorporated herein by reference for all purposes.  The terms of
the Credit Agreement shall govern in the case of any inconsistency between such
terms and the terms hereof.

          This Note is secured by the Security Agreement and all the other Loan
Documents, and all liens and security interests created or evidenced thereby.
Any holder shall be entitled to all benefits and remedies and security set forth
in the Credit Agreement and all the other Loan Documents.

          The occurrence of a Default or an Event of Default, under and as
defined in the Credit Agreement, shall constitute, respectively, a Default or an
Event of Default under this Note, and the unpaid principal of and accrued
interest on this Note may be declared due and payable in the manner and with the
effect provided in the Credit Agreement.

          Each Borrower and all sureties, endorsers, guarantors and any other
party now or hereafter liable for the payment of this Note in whole or in part,
hereby severally (i) waive demand, presentment for payment, notice of dishonor
and of nonpayment, protest, notice of protest, notice of intent to accelerate,
notice of acceleration and all other notice (except only for any notice that is
specifically required by the terms of the Credit Agreement or any other Loan
Document), filing of suit and diligence in collecting this Note or enforcing any
of the security herefor; (ii) agree to any substitution, subordination, exchange
or release of any such security or the release of any party primarily or
secondarily liable hereon; (iii) agree that the holder hereof shall not be
required first to institute suit or exhaust its remedies against any Borrower
<PAGE>
 
or others liable or to become liable hereon or to enforce its rights against
them or any security herefor; (iv) consent to any extension or postponement of
time of payment of this Note for any period or periods of time and to any
partial payments, before or after maturity, and to any other indulgences with
respect hereto, without notice thereof to any of them; and (v) submit (and waive
all rights to object) to personal jurisdiction in the State of Texas, and venue
in Bexar County, Texas, for the enforcement of any and all obligations under the
Loan Documents.

          If any holder of this Note retains an attorney in connection with any
default or at maturity or to collect, enforce or defend this Note or any other
Loan Document in any lawsuit or in any probate, reorganization, bankruptcy or
other proceeding, or if any Borrower sues any holder of this Note in connection
with this Note or any other Loan Document and does not prevail, then Borrowers
agree to pay to each such holder, in addition to principal and interest, all
costs and expenses incurred by such holder in trying to collect this Note or in
any such suit or proceeding, including reasonable attorneys' fees as and to the
extent provided in the Credit Agreement.

          Notwithstanding anything herein or in any other Loan Documents,
expressed or implied, to the contrary, in no event shall any interest rate
charged hereunder or under any of the other Loan Documents, or any interest
contracted for, collected or received by Lender or any holder hereof, exceed the
Maximum Lawful Rate.  It is expressly stipulated and agreed to be the intent of
Borrowers and Lender at all times to comply with the applicable law governing
the maximum rate or amount of interest payable on or in connection with this
Note.  If the applicable law is ever judicially interpreted so as to render
usurious any amount called for under this Note or under any of the other Loan
Documents, or contracted for, charged, taken, reserved or received with respect
to this Note, or if acceleration of the maturity of this Note, any prepayment by
Borrowers, or any other circumstance whatsoever, results in Lender having been
paid any interest in excess of that permitted by applicable law, then it is the
express intent of Borrowers and Lender that all excess amounts theretofore
collected by Lender be credited on the principal balance of this Note (or, if
this Note has been or would thereby be paid in full, refunded to Borrowers), and
the provisions of this Note and the other applicable Loan Documents immediately
be deemed reformed and the amounts thereafter collectible hereunder and
thereunder reduced, without the necessity of the execution of any new document,
so as to comply with the applicable law, but so as to permit the recovery of the
fullest amount otherwise called for hereunder and thereunder.  The right to
accelerate the maturity of this Note does not include the right to accelerate
any interest which has not otherwise accrued on the date of such acceleration,
and Lender does not intend to collect any unearned interest in the event of
acceleration.  All sums paid or agreed to be paid to Lender for the use,
forbearance or detention of the indebtedness evidenced hereby or by any other
Loan Document shall, to the extent permitted by applicable law, be amortized,
prorated, allocated and spread throughout the full term of such indebtedness
until payment in full so that the rate or amount of interest on account of such
indebtedness does not exceed the Maximum Lawful Rate.  The term "applicable law"
                                                                 -------------- 
as used herein shall mean the laws of the State of Texas, or any applicable
United States federal law to the extent that it permits Lender to contract for,
charge, take, reserve or receive a greater amount of interest than under Texas
law.  The provisions of this paragraph shall control all agreements between
Borrowers and Lender.

          Borrowers acknowledge and agree that the holder of this Note may, at
any time and from time to time, assign all or a portion of its interest in the
Credit Facility or transfer to an Eligible
<PAGE>
 
Assignee a participation interest in the Credit Facility, subject to and in
accordance with the terms and conditions of the Credit Agreement, including
Section 10.10 thereof.
-------------         

          ARBITRATION.  ANY CONTROVERSY OR CLAIM BETWEEN OR AMONG THE PARTIES
HERETO INCLUDING BUT NOT LIMITED TO THOSE ARISING OUT OF OR RELATING TO THIS
NOTE OR ANY RELATED NOTES OR INSTRUMENTS, INCLUDING ANY CLAIM BASED ON OR
ARISING FROM AN ALLEGED TORT, SHALL BE DETERMINED BY BINDING ARBITRATION IN
ACCORDANCE WITH THE FEDERAL ARBITRATION ACT (OR IF NOT APPLICABLE, THE
APPLICABLE STATE LAW), THE RULES OF PRACTICE AND PROCEDURE FOR THE ARBITRATION
OF COMMERCIAL DISPUTES OR JUDICIAL ARBITRATION AND MEDIATION SERVICES, INC.
(J.A.M.S.) AND THE "SPECIAL RULES" SET FORTH BELOW.  IN THE EVENT OF ANY
INCONSISTENCY, THE SPECIAL RULES SHALL CONTROL.  JUDGMENT UPON ANY ARBITRATION
AWARD MAY BE ENTERED IN ANY COURT HAVING JURISDICTION.  ANY PARTY TO THE NOTE
MAY BRING AN ACTION, INCLUDING A SUMMARY OR EXPEDITED PROCEEDING, TO COMPEL
ARBITRATION OF ANY CONTROVERSY OR CLAIM TO WHICH THIS NOTE APPLIES IN ANY COURT
HAVING JURISDICTION OVER SUCH ACTION.

          (A) SPECIAL RULES.  THE ARBITRATION SHALL BE CONDUCTED IN THE CITY OF
BORROWER'S DOMICILE AT THE TIME OF THE NOTE'S EXECUTION AND ADMINISTERED BY
J.A.M.S. WHO WILL APPOINT AN ARBITRATOR.  IF J.A.M.S. IS UNABLE OR LEGALLY
PRECLUDED FROM ADMINISTERING THE ARBITRATION, THEN THE AMERICAN ARBITRATION
ASSOCIATION WILL SERVE.  ALL ARBITRATION HEARINGS WILL BE COMMENCED WITHIN 90
DAYS OF THE DEMAND FOR ARBITRATION;  FURTHER, THE ARBITRATOR SHALL ONLY, UPON A
SHOWING OF CAUSE, BE PERMITTED TO EXTEND THE COMMENCEMENT OF SUCH HEARING FOR AN
ADDITIONAL 60 DAYS.

          (B)  RESERVATION OF RIGHTS.  NOTHING IN THIS NOTE SHALL BE DEEMED TO
(1) LIMIT THE APPLICABILITY OF ANY OTHERWISE APPLICABLE STATUTES OF LIMITATION
OR REPOSE AND ANY WAIVERS CONTAINED IN THIS NOTE; OR (II) BE A WAIVER BY THE
LENDER OF THE PROTECTION AFFORDED TO IT BY 12. U.S.C. (S)91 OR ANY SUBSTANTIALLY
EQUIVALENT STATE LAW; OR (III) LIMIT THE RIGHT OF THE LENDER HERETO (A) TO
EXERCISE SELF HELP REMEDIES SUCH AS (BUT NOT LIMITED TO) SETOFF, OR (B) TO
FORECLOSURE AGAINST ANY REAL OR PERSONAL PROPERTY COLLATERAL, OR (C) TO OBTAIN
FROM A COURT PROVISIONAL OR ANCILLARY REMEDIES SUCH AS (BUT NOT LIMITED TO)
INJUNCTIVE RELIEF, WRIT OF POSSESSION OR THE APPOINTMENT OF A RECEIVER.  THE
LENDER MAY EXERCISE SUCH SELF HELP RIGHTS, FORECLOSURE UPON SUCH PROPERTY, OR
OBTAIN SUCH PROVISIONAL OR ANCILLARY REMEDIES BEFORE, DURING OR AFTER THE
PENDENCY OF ANY ARBITRATION PROCEEDING BROUGHT PURSUANT TO THIS NOTE.  NEITHER
THE EXERCISE OR SELF HELP REMEDIES NOR THE INSTITUTION OR MAINTENANCE OF AN
ACTION FOR FORECLOSURE OR PROVISIONAL OR ANCILLARY REMEDIES SHALL CONSTITUTE A
WAIVER OF THE RIGHT OF ANY PARTY, INCLUDING THE CLAIMANT IN SUCH ACTION, TO
<PAGE>
 
ARBITRATE THE MERITS OF THE CONTROVERSY OR CLAIM OCCASIONING RESORT TO SUCH
REMEDIES.

          THIS NOTE SHALL BE CONSTRUED AND ENFORCED IN ACCORDANCE WITH AND
GOVERNED BY TEXAS LAW, EXCEPT TO THE EXTENT THAT THE LAWS OF ANOTHER
JURISDICTION GOVERN THE CREATION, PERFECTION OR ENFORCEMENT OF INTERESTS, OR THE
REMEDIES RELATED TO ANY PART OF THE COLLATERAL, OR TO THE EXTENT THAT UNITED
STATES FEDERAL LAW APPLIES PURSUANT TO SECTION 10.8 OF THE Credit Agreement OR
                                       ------------                           
OTHERWISE.

          IN WITNESS WHEREOF, Borrower has duly executed this Note as of the
date first above written.

                              BORROWERS:
                              --------- 

                              TRAVIS BOATS & MOTORS, INC., a Texas corporation,
                              TRAVIS SNOWDEN MARINE, INC., A Texas corporation,
                              TRAVIS BOATING CENTER ARLINGTON, INC., a Texas
                              corporation, FALCON MARINE, INC., a Texas
                              corporation, FALCON MARINE ABILENE, INC., a Texas
                              corporation, TRAVIS BOATING CENTER BEAUMONT, INC.,
                              a Texas corporation, TRAVIS BOATING CENTER
                              TENNESSEE, INC., a Texas corporation, TRAVIS
                              BOATING CENTER ALABAMA, INC., a Texas corporation,
                              TRAVIS BOATING CENTER GEORGIA, INC., a Texas
                              corporation and TRAVIS BOATING CENTER FLORIDA,
                              INC., a Texas corporation

                              By:    /s/ Mark T. Walton
                                     ------------------------
                              Name:  Mark T. Walton
                              Title: President
<PAGE>
 
                              TRAVIS BOATS & MOTORS BATON ROUGE, INC., a
                              Louisiana corporation and TRAVIS BOATING CENTER
                              LOUISIANA, INC., a Louisiana corporation

                              By:    /s/ Mark T. Walton
                                     -------------------------
                              Name:  Mark T. Walton
                              Title: President

                              TBC ARKANSAS, INC., an Arkansas corporation, RED
                              RIVER MARINE ARKANSAS, INC., a Arkansas
                              corporation and TRAVIS BOATING CENTER LITTLE ROCK,
                              INC., a Arkansas corporation

                              By:    /s/ Mark T. Walton
                                     -------------------------
                              Name:  Mark T. Walton
                              Title: President

                              TBC MANAGEMENT, INC., a Delaware corporation

                              By:    /s/ Mark T. Walton
                                     -------------------------
                              Name:  Mark T. Walton
                              Title: President

                              TBC MANAGEMENT, LTD., a Texas limited partnership

                                   By: TRAVIS BOATS & MOTORS, INC., a
                                      Texas corporation, as General
                                      Partner

                                   By:    /s/ Mark T. Walton
                                          --------------------------
                                   Name:  Mark T. Walton
                                   Title: President

1523490
<PAGE>

                               EXHIBIT 10.29(d) 
                                REVOLVING NOTE


$6,000,000                San Antonio, Texas                   December 12, 1996


          FOR VALUE RECEIVED, TRAVIS BOATS & MOTORS, INC., a Texas corporation,
TRAVIS SNOWDEN MARINE, INC., a Texas corporation, TRAVIS BOATING CENTER
ARLINGTON, INC., a Texas corporation, FALCON MARINE, INC., a Texas corporation,
FALCON MARINE ABILENE, INC., a Texas corporation, TRAVIS BOATING CENTER
BEAUMONT, INC., a Texas corporation, TRAVIS BOATS & MOTORS BATON ROUGE, INC., a
Louisiana corporation, TBC ARKANSAS, INC., an Arkansas corporation, TBC
MANAGEMENT, Ltd., a Texas limited partnership, TBC MANAGEMENT, INC., a Delaware
corporation, TRAVIS BOATING CENTER LOUISIANA, INC., a Louisiana corporation,
TRAVIS BOATING CENTER TENNESSEE, INC., a Texas corporation, TRAVIS BOATING
CENTER ALABAMA, INC., a Texas corporation, RED RIVER MARINE ARKANSAS, INC., an
Arkansas corporation, TRAVIS BOATING CENTER LITTLE ROCK, INC., an Arkansas
corporation, TRAVIS BOATING CENTER GEORGIA, INC., a Texas corporation and TRAVIS
BOATING CENTER FLORIDA, INC., a Texas corporation (collectively "Borrowers"),
                                                                 ---------   
hereby, jointly and severally, promise to pay to the order of HIBERNIA NATIONAL
BANK, a national banking association ("Lender"), at the offices of NATIONSBANK
                                       ------                                 
OF TEXAS, N.A., a national banking association (the "Agent") at 300 Convent
                                                     -----                 
Street, San Antonio, Texas 78205, the principal sum of Six Million and No/100
Dollars ($6,000,000.00) (or the unpaid balance of all principal advanced against
this Note, if that amount is less), on or before the Termination Date for this
Note (as established by the Agreement), in lawful money of the United States of
America, together with interest on the unpaid principal balance of this Note
from day to day outstanding, in accordance with the terms and provisions of the
Agreement; provided, however, that in no event shall interest accrue hereunder
at a rate in excess of the Maximum Lawful Rate.  Subject to the provisions
hereof limiting interest to the Maximum Lawful Rate, interest on Advances shall
be computed based on the number of days elapsed and 360-days per year or in the
case of interest accruing at the Maximum Lawful Rate, 365/366 days per year.
Advances of the principal indebtedness evidenced by this Note shall be made
pursuant to the Credit Agreement (as herein defined), which amounts may be
borrowed, repaid and reborrowed as provided in and subject to the terms of the
Credit Agreement.  Each Advance made by Lender to Borrowers pursuant to the
Credit Agreement may be recorded by lender and, with respect to any transfer
hereof, endorsed on the grid attached hereto which is part of this Note.  Any
failure by Lender to endorse the grid attached hereto shall not impair the
obligation of Borrowers to pay any amount due and owing hereunder.

          All capitalized terms used herein, but not specifically defined, shall
have the same meanings set forth in the Agreement.

          Principal and all accrued interest hereunder shall be due and payable
upon the terms and on the dates provided for in the Credit Agreement.
<PAGE>
 
          After maturity of this Note or the occurrence of an Event of Default,
the outstanding principal balance of this Note shall, at the option of the
Required Lenders, bear interest at the Default Rate, as provided in the
Agreement.

          If at any time the Applicable Rate shall be limited to the Maximum
Lawful Rate, any subsequent reductions in the Applicable Rate shall not reduce
the rate of interest on this Note below the Maximum Lawful Rate until the total
amount of interest accrued equals the amount of interest which would have
accrued if the Applicable Rate had at all times been in effect.  In the event
that at maturity (stated or by acceleration), or at the final payment of the
Credit Facility, the total amount of interest paid or accrued on the Credit
Facility is less than the amount of interest which would have accrued if the
Applicable Rate had at all times been in effect with respect thereto, then at
such time, to the extent permitted by law, Borrowers shall pay to Agent, for the
ratable benefit of the Lenders, an amount equal to the difference between (a)
the lesser of the amount of interest which would have accrued if the Applicable
Rate had at all times been in effect and the amount of interest which would have
accrued if the Maximum Lawful Rate had at all times been in effect, and (b) the
amount of interest actually paid on the Credit Facility.

          This Note has been executed and delivered pursuant to the terms of
that certain Revolving Credit Agreement (as the same may be modified, amended,
supplemented, extended or restated from time to time, the "Credit Agreement")
                                                           ----------------  
dated as of December 12, 1996, executed by and among Borrowers, Agent and the
Lenders (which includes the payee of this Note) and is one of the notes defined
therein as a "Note", the terms and provisions of the Credit Agreement related to
              ----                                                              
this Note being incorporated herein by reference for all purposes.  The terms of
the Credit Agreement shall govern in the case of any inconsistency between such
terms and the terms hereof.

          This Note is secured by the Security Agreement and all the other Loan
Documents, and all liens and security interests created or evidenced thereby.
Any holder shall be entitled to all benefits and remedies and security set forth
in the Credit Agreement and all the other Loan Documents.

          The occurrence of a Default or an Event of Default, under and as
defined in the Credit Agreement, shall constitute, respectively, a Default or an
Event of Default under this Note, and the unpaid principal of and accrued
interest on this Note may be declared due and payable in the manner and with the
effect provided in the Credit Agreement.

          Each Borrower and all sureties, endorsers, guarantors and any other
party now or hereafter liable for the payment of this Note in whole or in part,
hereby severally (i) waive demand, presentment for payment, notice of dishonor
and of nonpayment, protest, notice of protest, notice of intent to accelerate,
notice of acceleration and all other notice (except only for any notice that is
specifically required by the terms of the Credit Agreement or any other Loan
Document), filing of suit and diligence in collecting this Note or enforcing any
of the security herefor; (ii) agree to any substitution, subordination, exchange
or release of any such security or the release of any party primarily or
secondarily liable hereon; (iii) agree that the holder hereof shall not be
required first to institute suit or exhaust its remedies against any Borrower
<PAGE>
 
or others liable or to become liable hereon or to enforce its rights against
them or any security herefor; (iv) consent to any extension or postponement of
time of payment of this Note for any period or periods of time and to any
partial payments, before or after maturity, and to any other indulgences with
respect hereto, without notice thereof to any of them; and (v) submit (and waive
all rights to object) to personal jurisdiction in the State of Texas, and venue
in Bexar County, Texas, for the enforcement of any and all obligations under the
Loan Documents.

          If any holder of this Note retains an attorney in connection with any
default or at maturity or to collect, enforce or defend this Note or any other
Loan Document in any lawsuit or in any probate, reorganization, bankruptcy or
other proceeding, or if any Borrower sues any holder of this Note in connection
with this Note or any other Loan Document and does not prevail, then Borrowers
agree to pay to each such holder, in addition to principal and interest, all
costs and expenses incurred by such holder in trying to collect this Note or in
any such suit or proceeding, including reasonable attorneys' fees as and to the
extent provided in the Credit Agreement.

          Notwithstanding anything herein or in any other Loan Documents,
expressed or implied, to the contrary, in no event shall any interest rate
charged hereunder or under any of the other Loan Documents, or any interest
contracted for, collected or received by Lender or any holder hereof, exceed the
Maximum Lawful Rate.  It is expressly stipulated and agreed to be the intent of
Borrowers and Lender at all times to comply with the applicable law governing
the maximum rate or amount of interest payable on or in connection with this
Note.  If the applicable law is ever judicially interpreted so as to render
usurious any amount called for under this Note or under any of the other Loan
Documents, or contracted for, charged, taken, reserved or received with respect
to this Note, or if acceleration of the maturity of this Note, any prepayment by
Borrowers, or any other circumstance whatsoever, results in Lender having been
paid any interest in excess of that permitted by applicable law, then it is the
express intent of Borrowers and Lender that all excess amounts theretofore
collected by Lender be credited on the principal balance of this Note (or, if
this Note has been or would thereby be paid in full, refunded to Borrowers), and
the provisions of this Note and the other applicable Loan Documents immediately
be deemed reformed and the amounts thereafter collectible hereunder and
thereunder reduced, without the necessity of the execution of any new document,
so as to comply with the applicable law, but so as to permit the recovery of the
fullest amount otherwise called for hereunder and thereunder.  The right to
accelerate the maturity of this Note does not include the right to accelerate
any interest which has not otherwise accrued on the date of such acceleration,
and Lender does not intend to collect any unearned interest in the event of
acceleration.  All sums paid or agreed to be paid to Lender for the use,
forbearance or detention of the indebtedness evidenced hereby or by any other
Loan Document shall, to the extent permitted by applicable law, be amortized,
prorated, allocated and spread throughout the full term of such indebtedness
until payment in full so that the rate or amount of interest on account of such
indebtedness does not exceed the Maximum Lawful Rate.  The term "applicable law"
                                                                 -------------- 
as used herein shall mean the laws of the State of Texas, or any applicable
United States federal law to the extent that it permits Lender to contract for,
charge, take, reserve or receive a greater amount of interest than under Texas
law.  The provisions of this paragraph shall control all agreements between
Borrowers and Lender.

          Borrowers acknowledge and agree that the holder of this Note may, at
any time and from time to time, assign all or a portion of its interest in the
Credit Facility or transfer to an Eligible
<PAGE>
 
Assignee a participation interest in the Credit Facility, subject to and in
accordance with the terms and conditions of the Credit Agreement, including
Section 10.10 thereof.
-------------         

          ARBITRATION.  ANY CONTROVERSY OR CLAIM BETWEEN OR AMONG THE PARTIES
HERETO INCLUDING BUT NOT LIMITED TO THOSE ARISING OUT OF OR RELATING TO THIS
NOTE OR ANY RELATED NOTES OR INSTRUMENTS, INCLUDING ANY CLAIM BASED ON OR
ARISING FROM AN ALLEGED TORT, SHALL BE DETERMINED BY BINDING ARBITRATION IN
ACCORDANCE WITH THE FEDERAL ARBITRATION ACT (OR IF NOT APPLICABLE, THE
APPLICABLE STATE LAW), THE RULES OF PRACTICE AND PROCEDURE FOR THE ARBITRATION
OF COMMERCIAL DISPUTES OR JUDICIAL ARBITRATION AND MEDIATION SERVICES, INC.
(J.A.M.S.) AND THE "SPECIAL RULES" SET FORTH BELOW.  IN THE EVENT OF ANY
INCONSISTENCY, THE SPECIAL RULES SHALL CONTROL.  JUDGMENT UPON ANY ARBITRATION
AWARD MAY BE ENTERED IN ANY COURT HAVING JURISDICTION.  ANY PARTY TO THE NOTE
MAY BRING AN ACTION, INCLUDING A SUMMARY OR EXPEDITED PROCEEDING, TO COMPEL
ARBITRATION OF ANY CONTROVERSY OR CLAIM TO WHICH THIS NOTE APPLIES IN ANY COURT
HAVING JURISDICTION OVER SUCH ACTION.

          (A) SPECIAL RULES.  THE ARBITRATION SHALL BE CONDUCTED IN THE CITY OF
BORROWER'S DOMICILE AT THE TIME OF THE NOTE'S EXECUTION AND ADMINISTERED BY
J.A.M.S. WHO WILL APPOINT AN ARBITRATOR.  IF J.A.M.S. IS UNABLE OR LEGALLY
PRECLUDED FROM ADMINISTERING THE ARBITRATION, THEN THE AMERICAN ARBITRATION
ASSOCIATION WILL SERVE.  ALL ARBITRATION HEARINGS WILL BE COMMENCED WITHIN 90
DAYS OF THE DEMAND FOR ARBITRATION;  FURTHER, THE ARBITRATOR SHALL ONLY, UPON A
SHOWING OF CAUSE, BE PERMITTED TO EXTEND THE COMMENCEMENT OF SUCH HEARING FOR AN
ADDITIONAL 60 DAYS.

          (B)  RESERVATION OF RIGHTS.  NOTHING IN THIS NOTE SHALL BE DEEMED TO
(1) LIMIT THE APPLICABILITY OF ANY OTHERWISE APPLICABLE STATUTES OF LIMITATION
OR REPOSE AND ANY WAIVERS CONTAINED IN THIS NOTE; OR (II) BE A WAIVER BY THE
LENDER OF THE PROTECTION AFFORDED TO IT BY 12. U.S.C. (S)91 OR ANY SUBSTANTIALLY
EQUIVALENT STATE LAW; OR (III) LIMIT THE RIGHT OF THE LENDER HERETO (A) TO
EXERCISE SELF HELP REMEDIES SUCH AS (BUT NOT LIMITED TO) SETOFF, OR (B) TO
FORECLOSURE AGAINST ANY REAL OR PERSONAL PROPERTY COLLATERAL, OR (C) TO OBTAIN
FROM A COURT PROVISIONAL OR ANCILLARY REMEDIES SUCH AS (BUT NOT LIMITED TO)
INJUNCTIVE RELIEF, WRIT OF POSSESSION OR THE APPOINTMENT OF A RECEIVER.  THE
LENDER MAY EXERCISE SUCH SELF HELP RIGHTS, FORECLOSURE UPON SUCH PROPERTY, OR
OBTAIN SUCH PROVISIONAL OR ANCILLARY REMEDIES BEFORE, DURING OR AFTER THE
PENDENCY OF ANY ARBITRATION PROCEEDING BROUGHT PURSUANT TO THIS NOTE.  NEITHER
THE EXERCISE OR SELF HELP REMEDIES NOR THE INSTITUTION OR MAINTENANCE OF AN
ACTION FOR FORECLOSURE OR PROVISIONAL OR ANCILLARY REMEDIES SHALL CONSTITUTE A
WAIVER OF THE RIGHT OF ANY PARTY, INCLUDING THE CLAIMANT IN SUCH ACTION, TO
<PAGE>
 
ARBITRATE THE MERITS OF THE CONTROVERSY OR CLAIM OCCASIONING RESORT TO SUCH
REMEDIES.

          THIS NOTE SHALL BE CONSTRUED AND ENFORCED IN ACCORDANCE WITH AND
GOVERNED BY TEXAS LAW, EXCEPT TO THE EXTENT THAT THE LAWS OF ANOTHER
JURISDICTION GOVERN THE CREATION, PERFECTION OR ENFORCEMENT OF INTERESTS, OR THE
REMEDIES RELATED TO ANY PART OF THE COLLATERAL, OR TO THE EXTENT THAT UNITED
STATES FEDERAL LAW APPLIES PURSUANT TO SECTION 10.8 OF THE Credit Agreement OR
                                       ------------                           
OTHERWISE.

          IN WITNESS WHEREOF, Borrower has duly executed this Note as of the
date first above written.

                              BORROWERS:
                              --------- 

                              TRAVIS BOATS & MOTORS, INC., a Texas corporation,
                              TRAVIS SNOWDEN MARINE, INC., A Texas corporation,
                              TRAVIS BOATING CENTER ARLINGTON, INC., a Texas
                              corporation, FALCON MARINE, INC., a Texas
                              corporation, FALCON MARINE ABILENE, INC., a Texas
                              corporation, TRAVIS BOATING CENTER BEAUMONT, INC.,
                              a Texas corporation, TRAVIS BOATING CENTER
                              TENNESSEE, INC., a Texas corporation, TRAVIS
                              BOATING CENTER ALABAMA, INC., a Texas corporation,
                              TRAVIS BOATING CENTER GEORGIA, INC., a Texas
                              corporation and TRAVIS BOATING CENTER FLORIDA,
                              INC., a Texas corporation

                              By:    /s/ Mark T. Walton
                                     -------------------------
                              Name:  Mark T. Walton
                              Title: President
<PAGE>
 
                              TRAVIS BOATS & MOTORS BATON ROUGE, INC., a
                              Louisiana corporation and TRAVIS BOATING CENTER
                              LOUISIANA, INC., a Louisiana corporation

                              By:    /s/ Mark T. Walton
                                     -------------------------
                              Name:  Mark T. Walton
                              Title: President

                              TBC ARKANSAS, INC., an Arkansas corporation, RED
                              RIVER MARINE ARKANSAS, INC., a Arkansas
                              corporation and TRAVIS BOATING CENTER LITTLE ROCK,
                              INC., a Arkansas corporation
 
                              By:    /s/ Mark T. Walton
                                     -------------------------
                              Name:  Mark T. Walton
                              Title: President

                              TBC MANAGEMENT, INC., a Delaware corporation

                              By:    /s/ Mark T. Walton
                                     -------------------------
                              Name:  Mark T. Walton
                              Title: President

                              TBC MANAGEMENT, LTD., a Texas limited partnership

                              By: TRAVIS BOATS & MOTORS, INC., a
                                 Texas corporation, as General
                                 Partner

                              By:    /s/ Mark T. Walton
                                     -------------------------
                              Name:  Mark T. Walton
                              Title: President

1523494