Document:

Exhibit 10.2

INDEPENDENCE BANCSHARES, INC.

 

2013 EQUITY INCENTIVE PLAN

 

Section 1.              
General Purpose of Plan; Definitions.

 

The name of this plan is the Independence Bancshares,
Inc. 2013 Equity Incentive Plan (the “Plan”). The Plan was approved by the Board of Directors on February 27,
2013 (the “Effective Date”) and subsequently adopted by the shareholders of the Company on _________, 2013.
The purpose of the Plan is to enable the Company and its Subsidiaries to attract and retain highly qualified personnel who will
contribute to the Company’s success and to provide incentives to Participants to increase shareholder value and therefore
further align the interests of the Participants with those of the shareholders to benefit all shareholders of the Company.

 

For purposes of the Plan, the following terms
shall be defined as set forth below:

 

(a)               
“Affiliate” means the Company and any corporation, trade or business if it and the Company are
members of a controlled group of corporations, or are under common control or are members of an affiliated service group or are
otherwise aggregated, within the meanings of Sections 414(b), 414(m) and 414(o) of the Code.

(b)              
“Administrator” means the Board and/or the Committee, as the case may be, to the extent that it
administers the Plan, as set forth in Section 2 below.

(c)               
“Award” means any award granted under the Plan as further described in Sections 6, 7, and 8 below.

(d)              
“Award Agreement” means, with respect to each Award, the signed written agreement between the
Company and the Participant setting forth the terms and conditions applicable to the Award.

(e)               
“Board” means the Board of Directors of the Company.

(f)                
“Cause” shall mean with respect to the Company or any Subsidiary which employs the Participant
or for which such Participant primarily performs services, (i) the commission by the Participant of an act of fraud, embezzlement,
theft or proven dishonesty, or any other illegal act or practice (whether or not resulting in criminal prosecution or conviction),
or any act or practice which the Administrator shall, in good faith, deem to have resulted in the Participant becoming unbondable
under the Company’s or the Subsidiary’s fidelity bond; (ii) the willful engaging by the Participant in misconduct which
is deemed by the Administrator, in good faith, to be materially injurious to the Company or any Subsidiary, monetarily or otherwise,
including, but not limited to, improperly disclosing trade secrets or other confidential or sensitive business information and
data about the Company or any Subsidiary and competing with the Company or its Subsidiaries, or soliciting employees, consultants
or customers of the Company

 
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of any Subsidiary in violation of law or any employment or
other agreement to which the Participant is a party; or (iii) the willful and continued failure or habitual neglect by the Participant
to perform his or her duties with the Company or the Subsidiary substantially in accordance with the operating and personnel policies
and procedures of the Company or the Subsidiary generally applicable to all their employees. For purposes of this Plan, no act
or failure to act by the Participant shall be deemed be “willful” unless done or omitted to be done by Participant
not in good faith and without reasonable belief that the Participant’s action or omission was in the best interest of the
Company and/or the Subsidiary. Notwithstanding the foregoing, if the Participant has entered into an employment agreement or change
in control severance agreement that is binding as of the date of employment termination, and if such agreement defines “Cause,”
then the definition of “Cause” in such agreement shall apply to the Participant in this Plan. “Cause” under
either (i), (ii) or (iii) shall be determined by the Administrator. The determination of "Cause" may be made by the Administrator
solely for purposes of this Plan and without regard to any other purpose of the Company.

(g)               
“Change in Control” means the first to occur of any one of the events:

                                                                 
(i)                       
any Person (as such term is defined in Section 3(a)(9) of the Securities Exchange Act of 1934 (the "Exchange Act")
and as used in Sections 13(d)(3) and 14(d)(2) of the Exchange Act) is or becomes a beneficial owner (as such term is defined in
Rule 13d (3) under the Exchange Act), directly or indirectly, of securities of the Company representing 25% or more of the combined
voting power of the Company’s then outstanding securities eligible to vote for the election of the Board (the "Company
Voting Securities"); provided, however, that the event described in this paragraph (i) shall not be deemed to
be a Change in Control by virtue of any of the following acquisitions: (1) by the Company or any Subsidiary; (2) by any employee
benefit plan (or related trust) sponsored or maintained by the Company or any Subsidiary; (3) by any underwriter temporarily holding
securities pursuant to an offering of such securities; (4) pursuant to a Non-Control Transaction (as defined in (v) below); or
(5) pursuant to any acquisition by the Participant or any group of persons including the Participant (or any entity controlled
by the Participant or any group of persons including the Participant);

                                                               
(ii)                       
any plan or proposal for the dissolution or liquidation of the Company is adopted by the shareholders of the Company;

                                                              
(iii)                       
individuals who, as of the Effective Date, constituted the Board (the “Incumbent Board”) cease for any reason
to constitute at least a majority of the Board; provided, however, that any individual becoming a director subsequent
to the Effective Date whose election, or nomination for election by the Company’s shareholders, was approved by a vote of
at least two-thirds of the directors then comprising the Incumbent Board (either by a specific vote or by approval of the proxy
statement of the Company in which such person is named as a nominee for director, without objection to such nomination) shall be
considered as though such individual were a member of the Incumbent Board, but excluding for this purpose any such individual whose
initial assumption of office

 
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occurs as a result of either an actual or threatened election
contest or other actual or threatened solicitation of proxies or consents by or on behalf of a Person other than the Board;

                                                             
(iv)                       
all or substantially all of the assets of the Company are sold, transferred or distributed to an entity that is not an Affiliate
of the Company; or

                                                               
(v)                       
there occurs a merger, consolidation, share exchange or other corporate transaction involving the Company that requires
the approval of the Company's stockholders (whether for such transaction or the issuance of securities in the transaction or otherwise
(a “Reorganization”)), unless immediately following such Reorganization (1) more than 50% of the total voting power
of (A) the corporation resulting from such Reorganization (the "Surviving Company"), or (B) if applicable, the ultimate
parent corporation that directly or indirectly has beneficial ownership of 95% of the voting securities eligible to elect directors
of the Surviving Company (the "Parent Company"), is represented by the Company Voting Securities that were outstanding
immediately prior to such Reorganization (or, if applicable, is represented by shares into which such Company Voting Securities
were converted pursuant to such Reorganization), and such voting power among the holders thereof is in substantially the same proportion
as the voting power of such Company Voting Securities among holders thereof immediately prior to the Reorganization; (2) no person
(other than any employee benefit plan (or related trust) sponsored or maintained by the Surviving Company or the Parent Company)
is or becomes the beneficial owner, directly or indirectly, of 25% or more of the total voting power of the outstanding voting
securities eligible to elect directors of the Parent Company (or, if there is no Parent Company, the Surviving Company); and (3)
at least a majority of the members of the board of directors of the Parent Company (or, if there is no Parent Company, the Surviving
Company) following the consummation of the Reorganization were members of the Incumbent Board at the time of the Board's approval
of the execution of the initial agreement providing for such Reorganization (any Reorganization which satisfies all of the criteria
specified in (1), (2) and (3) above will be deemed to be a "Non-Control Transaction").

Notwithstanding the foregoing, a Change
in Control shall not be deemed to have occurred solely because any Person acquires beneficial ownership of 25% or more of the Company
Voting Securities as a result of the acquisition of Company Voting Securities by the Company which reduces the number of Company
Voting Securities outstanding; provided, that, if after such acquisition by the Company such person becomes the beneficial owner
of additional Company Voting Securities that increases the percentage of outstanding Company Voting Securities beneficially owned
by such Person, a Change in Control shall then occur. In addition, for any Award that constitutes deferred compensation under Section
409A of the Code, a Change of Control shall be deemed to have occurred under the Plan with respect to such Award only if a change
in the ownership or effective control of the Company or a change in ownership of a substantial portion of the assets of the Company
shall also be deemed to have occurred under Section 409A of the Code.

 
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(h)               
 “Code” means the Internal Revenue Code of 1986 or any successor thereto.

(i)                 
“Committee” means the Compensation/Nominating Committee of the Board or, if applicable, any other
committee the Board may appoint to administer the Plan. If at any time or to any extent the Board shall not administer the Plan,
then the functions of the Board specified in the Plan may be exercised by the Committee. The Committee shall be comprised of three
or more “outside” directors, within the meaning of section 162(m) of the Internal Revenue Code, who are also “non-employee
directors” as defined in Rule 16b-3 under the Securities Exchange Act of 1934 and “independent directors” as
defined by NASDAQ Listing Rule 5605(a)(2).

(j)                
“Common Stock” or “Stock” means the common stock, par value $0.01 per share,
of the Company.

(k)              
“Company” means Independence Bancshares, Inc. a South Carolina corporation (or any successor corporation
that assumes this Plan, either contractually or by operation of law).

(l)                 
"Dividend Equivalent" means a right, granted to an Eligible Recipient to receive cash, Stock, other
Awards or other property equal in value to dividends paid with respect to a specified number of shares of Stock, or other periodic
payments.

(m)             
“Eligible Recipient” means an officer, director, employee, consultant, or advisor of the Company
or any Subsidiary.

(n)               
“Exercise Price” means the per Share price at which a Participant holding an Award of Options
may purchase Shares issuable with respect to such Award of Options, if any.

(o)              
"Fair Market Value" on any date shall mean

                                                                 
(i) if the Common Stock is readily tradable on an established securities market (as defined in Treasury Regulation §1.897-1(m)),
the closing sales price of the Common Stock on such date on the securities exchange having the greatest volume of trading in the
Common Stock during the 30-day period preceding the day the value is to be determined or, if there is no reported closing sales
price on such date, the next preceding date on which there was a reported closing price; or

                                                               
(ii)                       
 if the Common Stock also is not traded on an established securities market (as defined in Treasury Regulation §1.897-1(m)),
the fair market value as determined in good faith by the Board or the Administrator by application of a reasonable valuation method
consistently applied and taking into consideration all available information material to the value of the Company; factors to be
considered may include, as applicable, independent third party valuations of the Common Stock, trading activity of the Common Stock
known by the Board or Administrator, whether on the over-the-counter market or through private transactions, the value of the tangible
and intangible assets of the

 
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Company, the present value of future cash-flows of the
Company, the market value of stock or equity interests in similar corporations which can be readily determined through objective
means (such as through trading prices on an established securities market or an amount paid in an arm's length private transaction),
and other relevant factors such as control premiums or discounts for lack of marketability. For purposes of the foregoing, a valuation
prepared in accordance with any of the methods set forth in Treasury Regulation Section 1.409A-1(b)(5)(iv)(B)(2), consistently
used, shall be rebuttably presumed to result in a reasonable valuation. This paragraph is intended to comply with the definition
of "fair market value" contained in Treasury Regulation Section 1.409A-1(b)(5)(iv) and should be interpreted consistently
therewith.

(p)              
“Grant Date” means the later of (a) the date on which the Administrator completes
the corporate action authorizing the grant of an Award or such later date specified by the Administrator or (b) the date on
which all conditions precedent to an Award have been satisfied, provided that conditions to the exercisability or vesting of Awards
shall not defer the Grant Date.

(q)              
“Incentive Stock Option” or “ISO” means any Option intended to qualify as an
“incentive stock option” within the meaning of Section 422 of the Code.

(r)                
“Nonqualified Stock Option” or “NQSO” means any Option that is not an Incentive
Stock Option, including any Option that provides (as of the time such Option is granted) that it will not be treated as an Incentive
Stock Option.

(s)               
“Option” means an option to purchase Shares granted pursuant to Section 6 of the Plan.

(t)                
“Participant” means any Eligible Recipient selected by the Administrator, pursuant to the Administrator’s
authority in Section 2 of the Plan, to receive an Award.

(u)               
"Performance Goals" means the restrictions, based upon the achievement of performance goals, established
by the Administrator. Such performance goals may include: earnings and earnings per share (before or after taxes and whether or
not excluding specific items, including but not limited to stock or other compensation expense); net income and net income per
share (before or after taxes and whether or not excluding specific items, including but not limited to stock or other compensation
expense); pre-tax, pre-provision earnings and pre-tax, pre-provision earnings per share; core pre-tax, pre-provision earnings and
core pre-tax, pre-provision earnings per share; pre-tax, pre-provision earnings or core pre-tax, pre-provision earnings to risk-weighted
assets; revenues; profits (net profit, gross profit, operating profit, economic profit, profit margins or other corporate profit
measures, in total or with respect to specific categories or business units); operating or cash earnings and operating or cash
earnings per share; cash (cash flow, cash generation or other cash measures); return measures (including, but not limited to, total
stockholder return, return on average assets, return on average stockholders’ equity, return on investment and cash return
on tangible equity); net interest income; net interest income on a tax equivalent basis; net interest margin; net interest margin
on a tax equivalent basis; net non-interest expense to average assets; interest-sensitivity gap levels;

 
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expense targets, efficiency ratio or other expense measures;
assets under management; levels of assets, loans (in total or with respect to specific categories of loans) and/or deposits (in
total or with respect to specific categories of deposit accounts, and with respect to number of account relationships or account
balance amounts); market share; growth in target market relationships; investments; value of assets; asset quality levels; charge-offs;
loan-loss reserves; non-performing assets; business expansion or consolidation (acquisitions and divestitures); strategic plan
development and implementation; internal rate of return; share price; regulatory compliance; satisfactory internal or external
audits; book value and book value per share; tangible stockholders’ equity and tangible book value per share; tangible common
equity and tangible common equity per share; tangible common equity to tangible assets; tangible common equity to risk-weighted
assets; improvement of financial ratings; and achievement of balance sheet or income statement objectives, or other financial accounting
or quantitative objectives established by the Administrator. Any performance goal(s) may be used to measure the performance of
the Company as a whole or any subsidiary or business unit of the Company or any combination thereof, as the Administrator may deem
appropriate. Performance for any goal can be measured on an absolute basis (i.e., versus the Company's budget or prior year result)
or relative to a peer group or industry index, as well as over a 1-year or multi-year period. In any event, the Administrator shall
have the authority to adjust any Performance Goal for unusual or non-recurring events in any manner permitted under Section 162(m)
of the Code.

(v)               
"Performance Period" is a period not less than one calendar year, beginning not earlier than the
year in which such Performance Award is granted, which may be referred to herein and by the Administrator by use of the calendar
year in which a particular Performance Period commences; provided however that the Administrator shall have the authority to adjust
a Performance Period for unusual or non-recurring events to a period of not less than six months.

(w)             
 “Permanent and Total Disability” shall have the same meaning as given to that term by Treasury
Regulation Section 1.409A-3(i)(4) and any regulations or rulings promulgated thereunder.

(x)               
“Qualified Domestic Relations Order” shall have the meaning set forth in the Code or in the Employee
Retirement Income Security Act of 1974, or the rules and regulations promulgated under the Code or such Act.

(y)               
“Restricted Stock” means Shares subject to certain restrictions granted pursuant to Section 7
of the Plan.

(z)               
"Restricted Stock Unit" means a right, granted to an Eligible Recipient under Section 8 hereof,
to receive Stock, cash or a combination thereof at the end of a specified vesting period.

(aa)           
“Shares” means shares of Common Stock reserved for issuance under the Plan, as adjusted pursuant
to Sections 3 or 4 of the Plan, and any successor security.

(bb)          
“Subsidiary” means any corporation (other than the Company) in an unbroken chain of corporations
beginning with the Company, if each of the corporations (other

 
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than the last corporation) in the unbroken chain owns stock
possessing 50% or more of the total combined voting power of all classes of stock in one of the other corporations in the chain.

(cc)           
“Substitute Awards” means Awards granted or shares of Common Stock issued by the Company in substitution
or exchange for awards previously granted by an Acquired Entity.

(dd)          
“Treasury Regulations” means regulations promulgated by the United States Department of Treasury
pursuant to the Code, including proposed or temporary regulations as applicable.

Section 2.
             
Administration.

The Plan shall be administered by the Board or
by the Committee (unless and to the extent that the Board directs the Committee not to administer the Plan). Pursuant to the terms
of the Plan, the Board or the Committee, as the case may be from time to time, shall serve as the Administrator and shall have
the power and authority:

 

(a)               
to select those Eligible Recipients who shall be Participants;

(b)              
to determine whether and the extent to which Awards are to be granted to Participants under the Plan;

(c)               
to determine the number of Shares to be covered by or subject to each Award granted under the Plan;

(d)              
to determine the terms and conditions, not inconsistent with the terms of the Plan, of each Award granted under the
Plan; and

(e)               
to determine the terms and conditions, not inconsistent with the terms of the Plan, that shall govern all written
instruments evidencing Awards granted under the Plan, including Award Agreements.

The Administrator shall have the authority,
in its sole discretion, to: adopt, alter, and repeal such administrative rules, guidelines and practices governing the Plan as
it shall from time to time deem advisable; correct any defect, supply any omission, reconcile any inconsistency, and resolve any
ambiguity in, and otherwise interpret, the terms and provisions of the Plan and any Award issued under the Plan (and any Award
Agreement relating thereto); and otherwise supervise the administration of the Plan. All decisions made by the Administrator pursuant
to the provisions of the Plan shall be final, conclusive and binding on all persons, including the Company and the Participants.

Notwithstanding the above, and subject to
Sections 3, 4, 6, 9, 10, and 13, outstanding Options granted under the Plan shall not be repriced without approval by the Company’s
shareholders. In particular, neither the Board nor the Administrator may take any action: (1) to amend the terms of an outstanding
Option to reduce the Exercise Price thereof, cancel an Option and replace it with a new Option with a lower Exercise Price, or
that has an economic effect that is the same as any such reduction or cancellation or (2) to cancel an

 
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outstanding Option having an Exercise Price above the then-current
Fair Market Value of the Stock in exchange for the grant of another type of Award, without, in each such case, first obtaining
approval of the shareholders of the Company of such action.

Section 3.
             
Shares Subject to the Plan.

The maximum number of Shares that may be issued
under the Plan shall initially be 2,466,720 and thereafter shall automatically be increased each time the Company issues additional
Shares so that the total number of shares issuable hereunder, plus 2,466,760 shares reserved under the Company’s 2005 Stock
Incentive Plan, shall at all times equal 20% of the then outstanding shares of Stock, unless in any case the Board of Directors
adopts a resolution providing that the number of shares issuable under this Plan shall not be so increased.

 

Such Shares may consist, in whole or in part,
of authorized and unissued shares or treasury shares. At all times the Company shall reserve and keep available a sufficient number
of Shares as shall be required to satisfy the requirements of all outstanding Options under the Plan. No fractional Shares shall
be issued or delivered pursuant to the Plan. The Administrator shall determine whether cash, additional Awards or other securities
or property shall be issued or paid in lieu of fractional Shares or whether any fractional Shares should be rounded, forfeited
or otherwise eliminated.

 

(a)               
Options: The maximum aggregated number of shares of Stock that may be subject to Options granted in any calendar
year to any one Participant shall be 2,000,000 shares. In addition, the maximum aggregate number of ISOs that may be issued under
the Plan is 2,000,000.

(b)              
Restricted Stock or Restricted Stock Units: The maximum aggregate number of shares of Stock that may be subject
to Awards of Restricted Stock or Restricted Stock Units granted in any calendar year to any one Participant shall be 2,000,000
shares.

(c)               
Compliance with Section 162(m) of the Code. To the extent required by Section 162(m) of the Code, shares subject
to Options which are canceled shall continue to be counted against the limits set forth in paragraphs (a) and (b) immediately preceding.

(d)              
Reissuance of Shares. Shares of Common Stock covered by an Award shall not be counted as used unless and until
they are actually issued and delivered to a Participant. If any Award lapses, expires, terminates or is canceled prior to the issuance
of shares thereunder or if shares of Common Stock are issued under the Plan to a Participant and thereafter are forfeited to or
otherwise reacquired by the Company, the shares subject to such Awards and the forfeited or reacquired shares shall again be available
for issuance under the Plan. Any shares of Common Stock (i) tendered by a Participant or retained by the Company as full or partial
payment to the Company for the purchase price of the Award, or (ii) covered by an Award that is settled in cash or in a manner
that some or all of the shares covered by the Award are not issued, shall among other actions, result in such shares being available
for Awards under the Plan. The number of shares of Common Stock available for issuance under the Plan shall not be reduced to reflect
any dividends or dividend equivalents that are reinvested into additional shares of Common Stock or credited as additional shares
of Common stock subject or paid with

 
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respect to an Award.

 

(e)               
Performance Goals. The Administrator, in its discretion, may set restrictions based upon the achievement of
Performance Goals, including, but not limited to, the purpose of qualifying Awards as "performance-based compensation"
under Section 162(m) of the Code. When granting any Award other than an Option or SAR, the Administrator may designate such Award
as a Qualified Performance-Based Award, based upon a determination that (i) the recipient is or may be a "covered employee"
(within the meaning of Section 162(m)(3) of the Code) with respect to such Award, and (ii) the Administrator wishes such Award
to qualify for exemption under Section 162(m) of the Code, and the terms of any such Award (and of the grant thereof) shall be
consistent with such designation (including, without limitation, that all such Awards be granted by a committee composed solely
of "outside directors"). To the extent required to comply with Section 162(m) of the Code, no later than 90 days following
the commencement of a Performance Period or, if earlier, by the expiration of 25% of a Performance Period, the Administrator will
designate one or more Performance Periods, determine the Participants for the Performance Periods and establish the Performance
Goals for the Performance Periods. The Administrator also has the authority to provide for accelerated vesting of any Award based
on the achievement of Performance Goals pursuant to the performance criteria specified for such Award. In the event that applicable
tax and/or securities laws change to permit the Administrator discretion to alter the governing performance criteria without obtaining
shareholder approval of such changes, the Administrator shall have sole discretion to make such changes without obtaining shareholder
approval. In granting Awards which are intended to qualify under Section 162(m) of the Code, the Administrator may follow any procedures
determined by it from time to time to be necessary or appropriate to ensure qualification of the Award under Section 162(m) of
the Code. Notwithstanding any other provision of the Plan, payment or vesting of any Performance Award shall not be made until
the applicable Performance Goals have been satisfied and any other material terms of such Award were in fact satisfied. The Administrator
shall certify in writing the attainment of each Performance Goal. Notwithstanding any provision of the Plan to the contrary, with
respect to any Performance Award, (a) the Administrator may not adjust, downwards or upwards, any amount payable, or other benefits
granted, issued, retained and/or vested pursuant to such an Award on account of satisfaction of the applicable Performance Goals;
provided that the Administrator may reduce or eliminate the performance compensation or other economic benefit that was due upon
attainment of the Performance Goal (exercise of "negative discretion") but such decrease does not increase the amount
payable to any other employee, and (b) the Administrator may not waive the achievement of the applicable Performance Goals, except
in the case of the Participant's death or disability, or a Change in Control.

 

(f)                
Substitute Awards. Notwithstanding any other provision of the Plan to the contrary, the Administrator may
grant Substitute Awards under the Plan. In the event that a written agreement between the Company and an Acquired Entity pursuant
to which a merger or consolidation is completed and approved by the Board and that agreement sets forth the terms and conditions
of the substitution for or assumption of outstanding awards of the Acquired Entity, those terms and conditions shall be deemed
to be the action of the Administrator without any further action by the Administrator, and the persons holding such awards shall
be deemed to be the Participants.

 
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(g)               
Administrator’s Discretion to Accelerate Vesting of Awards. Except upon the occurrence of a Change in
Control (which is governed by the provisions of Section 10 hereof), the Administrator may, in its discretion and as of a date determined
by the Administrator, fully vest any or all Awards awarded to a Participant pursuant to an Award and, upon such vesting, all restrictions
applicable to such Award shall terminate as of such date. Any action by the Administrator pursuant to this section may vary among
individual Participants and may vary among the Awards held by any individual Participant. Notwithstanding the preceding provisions
of this section, the Administrator may not take any action described in this section (i) with respect to an Award that has been
granted to a "covered Employee" (within the meaning of Treasury Regulation Section 1.162-27(c)(2)) if such Award is intended
to meet the exception for performance-based compensation under Section 162(m) of the code, or (ii) if such action shall cause any
Award hereunder which is or becomes subject to Section 409A of the Code to fail to comply with the requirements of Section 409A
of the Code.

 

(h)               
Forfeiture by Order of Regulatory Agency. If the Company's or any of its financial institution subsidiaries'
capital falls below the minimum requirements contained in 12 CFR Section 3 or below a higher requirement as determined by the Company's
or such subsidiary's primary bank regulatory agency, such agency may direct the Company to require Participants to exercise or
forfeit some or all of their Awards. All Awards granted under this Plan are subject to the terms of any such directive.

 

Section 4.
             
Corporate Transactions. 

Subject to the provisions of Section 10 hereof
relating to a Change in Control, in the event of any merger, consolidation, combination, reorganization, recapitalization, reclassification,
extraordinary cash dividend, stock dividend, stock split, reverse stock split, or other change in corporate structure, the Administrator
shall make an equitable substitution or proportionate adjustment in (i) the aggregate number of Shares reserved for issuance under
the Plan, and (ii) the kind, number, and Exercise Price of Shares (or other cash or property) issuable with respect to outstanding
Options granted under the Plan (which may become, without limitation, shares of an acquiring entity or other successor corporation
that assumes this Plan), and (iii) the kind and number of Shares subject to any outstanding Awards of Restricted Stock granted
under the Plan (which may become, without limitation, shares of an acquiring entity or other successor corporation that assumes
this Plan), in each case as may be determined by the Administrator, in its sole discretion; provided, that with respect
to ISOs, any adjustment shall be made in accordance with the provisions of Section 424(h) of the Code and any regulations or guidance
promulgated thereunder; and provided, further, that no such adjustment shall cause any Award hereunder which is or
becomes subject to Section 409A of the Code to fail to comply with the requirements of Section 409A of the Code.

 

Section 5.
             
Eligibility.

The Participants under the Plan shall be selected
from time to time by the Administrator, in its sole discretion, from among the Eligible Recipients. The Administrator shall have
the authority to grant Awards under the Plan to the Eligible Recipients; provided, however, that only current employees
may be granted ISOs.

 
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Section 6.
             
Options.

Options may be granted alone or in addition to
other Awards granted under the Plan. Any Option granted under the Plan shall be substantially in the form as the Administrator
may from time to time approve, and the provisions of each Option need not be the same with respect to each Participant. Participants
who are granted Options shall enter into an Award Agreement with the Company in such form as the Administrator shall determine,
which Award Agreement shall set forth, among other things, the Exercise Price of the Option, the term of the Option and provisions
regarding exercisability of the Option granted in connection with such Award Agreement.

 

Options granted under the Plan may be of two types:
(i) Incentive Stock Options and (ii) Nonqualified Stock Options. If and to the extent any Option granted under the Plan intended
to qualify as an ISO does not qualify as an ISO, such Option shall constitute a separate NQSO. A grant of an ISO can only be made
to an Eligible Recipient who is also an employee within the meaning of Section 422(a)(2) of the Code.

 

Options granted under the Plan shall be subject
to the following terms and conditions and shall contain such additional terms and conditions, not inconsistent with the terms of
the Plan, as the Administrator shall deem desirable:

 

(a)               
Option Exercise Price. The Exercise Price of Shares issuable with respect to an Option shall be determined
by the Administrator in its sole discretion, provided, however, that such Exercise Price shall not be less than 100%
of the Fair Market Value on the date of grant, except in the case of Substitute Awards. If a Participant owns or is deemed to own
(by reason of the attribution rules applicable under Section 424(d) of the Code) more than 10% of the combined voting power of
all classes of stock of the Company or any Subsidiary and an ISO is granted to such Participant, the Exercise Price of such ISO
shall be no less than 110% of the Fair Market Value on the date such Option is granted.

(b)              
Option Term. The term of each Option shall be fixed by the Administrator, but no Option shall be exercisable
more than 10 years after the date such Option is granted; provided, however, that if an employee owns or is deemed
to own (by reason of the attribution rules of Section 424(d) of the Code) more than 10% of the combined voting power of all classes
of stock of the Company or any Subsidiary and an ISO is granted to such employee, the term of such ISO (to the extent required
by the Code at the time of grant) shall be no more than five years from the date of grant.

(c)               
Exercisability. Options shall be exercisable at such time or times and subject to such terms and conditions
as shall be determined by the Administrator at the time of grant. Specifically such terms and conditions may include (1) the attainment
of one or more Performance Goals established by the Administrator, (2) the Participant's continued employment with the Company
or any subsidiary, or continued service as a director, consultant or advisor of the Company or any subsidiary, for a specified
period of time, (3) the occurrence of any other event or the satisfaction of any other condition specified by the Administrator
in its sole discretion, or (4) a combination of any of the foregoing. The Administrator may provide that any

 
16

     

     

    

Option shall be exercisable only in installments, and the
Administrator may waive such installment exercise provisions at any time, in whole or in part, based on such factors as the Administrator
may determine, all in its sole discretion. An Option designated as an Incentive Stock Option shall cease to qualify for favorable
tax treatment as an Incentive Stock Option to the extent it is exercised (if permitted by the terms of the Option) (i) more than
three months after the date of a Participant's termination of employment if termination was for reasons other than death or disability,
(ii) more than one year after the date of a Participant's termination of employment if termination was by reason of disability,
or (iii) more than six months following the first day of a Participant's leave of absence that exceeds three months, unless the
Participant's reemployment rights are guaranteed by statute or contract.

(d)              
Method of Exercise. Subject to Sections 6(c) and 9 of the Plan, vested Options may be exercised in whole or
in part at any time during the Option term, by giving notice as described in the applicable Award Agreement. As determined by the
Administrator in its sole discretion, payment in whole or in part may also be made: (i) in cash (ii) to the extent permitted by
applicable law, by means of any cashless exercise procedure approved by the Administrator, including by means of a net exercise
whereby the Company issues net Shares and the remaining balance of the Shares to satisfy the Participant's tax withholding obligations;
(iii) in the form of unrestricted shares of Common Stock already owned by the Participant (based on the Fair Market Value on the
date the Option is exercised); provided, however, that in the case of an ISO, the right to make payment in the form
of already owned shares of Common Stock may be authorized only at the time of grant; (iv) any other form of consideration approved
by the Administrator and permitted by applicable law; or (v) any combination of the foregoing.

A Participant shall generally have the rights
to dividends and any other rights of a shareholder with respect to the Shares subject to the Option only after the Participant
has given written notice of exercise, has paid in full for such Shares, and, if requested, has given the representation described
in paragraph (b) of Section 13 of the Plan.

 

(e)               
Non-Transferability of Options. Except as otherwise provided in the Award Agreement and subject to Section
9 of the Plan, Options may not be sold, pledged, assigned, hypothecated, transferred, or disposed of in any manner other than by
will, or by the laws of descent and distribution, except that NQSOs may be transferred if and to the extent set forth in an Award
Agreement.

(f)                
Annual Limit on Incentive Stock Options. To the extent that the aggregate Fair Market Value (determined as
of the date the ISO is granted) of Shares with respect to which ISOs granted to a Participant under this Plan and all other equity
compensation plans of the Company or any Subsidiary become exercisable for the first time by the Participant during any calendar
year exceeds $100,000 (as determined in accordance with Section 422(d) of the Code), the number of Shares attributable to
the amount of such Fair Market Value exceeding $100,000 shall be treated as issuable with respect to NQSOs. The maximum aggregate
number of ISOs that may be issued under the Plan is 2,000,000.

(g)               
Taxation of Incentive Stock Options.

                                                                 
(i)                       
In order to obtain certain tax benefits afforded to Incentive Stock

 
17

     

     

    

Options under Section 422 of the Code, the Participant
must hold the shares acquired upon the exercise of an Incentive Stock Option for two years after the Grant Date and one year after
the date of exercise.

                                                               
(ii)                       
A Participant may be subject to the alternative minimum tax at the time of exercise of an Incentive Stock Option. The Participant
shall give the Company prompt notice of any disposition of shares acquired on the exercise of an Incentive Stock Option prior to
the expiration of such holding periods.

(h)               
Certain Successor Options. To the extent not inconsistent with the terms, limitations and conditions of Section
422 of the Code and any regulations promulgated with respect thereto, an Option issued in respect of an option held by an employee
to acquire stock of any entity acquired, by merger or otherwise, by the Company (or any Subsidiary of the Company) may contain
terms that differ from those stated in this Section 6, but solely to the extent necessary to preserve for any such employee the
rights and benefits contained in such predecessor option, or to satisfy the requirements of Section 424(a) of the Code.

(i)                 
Code Definitions. For purposes of this Section 6, "disability," "parent corporation" and
"subsidiary corporation" shall have the meanings attributed to those terms for purposes of Section 422 of the Code.

Section 7.
             
Restricted Stock.

Awards of Restricted Stock may be granted either
alone or in addition to other Awards granted under the Plan. The Administrator shall determine the Eligible Recipients to whom,
and the time or times at which, awards of Restricted Stock shall be made; the number of Shares to be awarded with respect to an
Award of Restricted Stock; and the Restricted Period (as defined in Section 7(b) of this Plan) applicable to an Award of Restricted
Stock. Award Agreements with respect to Restricted Stock shall be in such form as the Administrator may from time to time approve,
and the provisions of Awards of Restricted Stock need not be the same with respect to each Participant. An Award of Restricted
Stock shall be subject to such terms and conditions not inconsistent with the Plan as the Administrator shall impose and shall
be evidenced by an Award Agreement.

 

(a)               
Stock Certificates. Subject to Section 7(c) below, with respect to each Participant who is granted an Award
of Restricted Stock, the Company shall either (i) issue a stock certificate in respect of such Award of Restricted Stock, which
certificate shall be registered in the name of the Participant and shall bear an appropriate legend referring to the terms, conditions,
and restrictions applicable to any such Award of Restricted Stock; or (ii) enter such Award of Restricted Stock in book entry form
(with appropriate restrictions noted with respect thereto), such method to be determined by the Administrator in its sole discretion.
The Company may require that any stock certificates evidencing Restricted Stock granted under the Plan be held in the custody of
the Company until the restrictions thereon shall have lapsed, and that, as a condition of any Award of Restricted Stock, the Participant
shall have delivered a stock power, endorsed in blank, relating to the Shares covered by such Award of Restricted Stock.

(b)              
Restrictions and Conditions Applicable to Restricted Stock. An Award of

 
18

     

     

    

Restricted Stock granted pursuant to this Section 7 shall
be subject to the following restrictions and conditions:

                                                                 
(i)                       
Subject to the provisions of the Plan and the Award Agreement governing any such Award of Restricted Stock, during such
period as may be set by the Administrator commencing on the date of grant of the Award, the Participant shall not be permitted
to sell, transfer, pledge, or assign such Shares of Restricted Stock (such period, the “Restricted Period”);
provided, however, that the Administrator may, in its sole discretion, provide for the lapse of such restrictions
in installments and may accelerate or waive such restrictions in whole or in part based on such factors and such circumstances
as the Administrator may determine, in its sole discretion. Notwithstanding the preceding provision of this section, the Administrator
may not take any action described in this section (i) with respect to an Award that has been granted to a "covered Employee"
(within the meaning of Treasury Regulation Section 1.162-27(c)(2)) if such Award is intended to meet the exception for performance-based
compensation under Section 162(m) of the Code, or (ii) if such action shall cause any Award hereunder which is or becomes subject
to Section 409A of the Code to fail to comply with the requirements of Section 409A of the Code. Such restrictions shall be determined
by the Administrator in its sole discretion, and the Administrator may provide that such restrictions lapse upon (1) the attainment
of one or more performance goals established by the Administrator, (2) the Participant’s continued employment with the Company
or any Subsidiary, or continued service as a director, consultant or advisor of the Company or any Subsidiary, for a specified
period of time, (3) the occurrence of any other event or the satisfaction of any other condition specified by the Administrator
in its sole discretion, or (4) a combination of any of the foregoing.

                                                               
(ii)                       
Subject to paragraph (b) of Section 13 of the Plan and/or unless otherwise provided in an Award Agreement, a Participant
awarded Restricted Stock under the Plan generally shall have the rights of a shareholder of the Company with respect to such Restricted
Stock during the Restricted Period (including, without limitation, the right to vote the Restricted Stock and to receive dividends
thereon).

Section 8.
             
Other Cash and Equity Awards. 

Awards of restricted stock units, stock appreciation
rights, performance awards, cash awards, performance units, phantom stock, dividend equivalents, or similar rights to purchase
or acquire Shares may be granted either alone or in addition to other Awards granted under the Plan. Such Awards shall be subject
to such terms, conditions, and restrictions (which may include a risk of forfeiture) as the Administrator may impose, if any, which
restrictions may lapse at the expiration of the vesting or deferral period, as the case may be, at earlier specified times (including
based on achievement of Performance Goals and/or future service requirements), separately or in combination, in installments or
otherwise, as the Administrator may determine in its sole discretion, which terms, conditions and restrictions shall be set forth
in

 
19

     

     

    

the instrument evidencing the Award. The maximum value of
cash awards that may be paid or payable in any calendar year to any one Participant shall be $500,000.

Section 9.
             
Termination of Employment or Service.

Unless otherwise set forth in Section 14
of the Plan or as may otherwise be set forth in an Award Agreement, if a Participant’s employment with or service as an officer,
director, employee, consultant, or advisor of the Company or of any Subsidiary: (a) terminates for any reason and on the date of
termination of employment or service the Participant is not vested as to his or her entire Award, the Shares issuable with respect
to the unvested portion of such Award shall be forfeited; and (b) terminates for the reasons described below and on the date of
termination of employment or service the Participant is vested as to any Options, then if such termination is (i) by reason of
his or her death or Permanent and Total Disability, any vested Option may thereafter be exercised for a period of twelve months
following termination of employment or service; (ii) for Cause, then any vested Option shall cease to be exercisable and shall
terminate; or (iii) for any other reason than listed in subsections (b)(i) and (b)(ii) above, then any vested Option may thereafter
be exercised for a period of 90 days following termination of employment or service. If, and to the extent that, after termination
of employment or service, the Participant does not exercise his or her Option within the applicable time stated above, the unexercised
Option shall terminate.

 

Section 10.
          Change
in Control.

Unless otherwise determined in an Award
Agreement, in the event of a Change in Control:

(a)               
Effective immediately prior to the occurrence of the Change in Control, (i) each outstanding Award shall become fully
vested and, if applicable, exercisable, (ii) the restrictions and forfeiture conditions applicable to any such Award granted shall
lapse, and (iii) any performance conditions imposed with respect to Awards shall be deemed to be fully achieved.

(b)              
The Administrator may notify all Participants that all outstanding Awards shall be assumed by the acquiring entity
or substituted on an equitable basis with awards issued by the acquiring entity.

(c)               
For purposes of this Section 10, an Award shall be considered assumed or substituted for if, following the Change
in Control, the Award remains subject to the same terms and conditions that were applicable to the Award immediately prior to the
Change in Control except that, if the Award related to Shares, the Award instead confers the right to receive common stock or other
securities of the acquiring entity.

(d)              
Notwithstanding any other provision of the Plan, in the event of a Change in Control, except as would otherwise result
in adverse tax consequences under Section 409A of the Code, the Board may, in its sole discretion, provide that each Award shall,
immediately upon the occurrence of a Change in Control, be cancelled in exchange for a payment in cash or securities in an amount
equal to (i) the excess (if any) of the consideration paid per Share in the

 
20

     

     

    

Change in Control (as determined by the Administrator in its
sole discretion) over the exercise or purchase price (if any) per Share subject to the Award multiplied by (ii) the number of Shares
subject to the Award (if the consideration paid per share in the Change in Control is deemed by the Administrator to be less than
the Exercise Price or purchase price (if any) per Share subject to an Award, then such Awards may be deemed to have been paid in
full and canceled by the Administrator).

Section 11.
          Amendment
and Termination.

The Board may amend, alter, or discontinue the
Plan, but no amendment, alteration, or discontinuation that would materially impair the rights of a Participant under any Award
granted or Award Agreement in effect under the Plan shall be made without such Participant’s consent. The Administrator may
accept surrender of outstanding Awards and grant new Awards in substitution for them; provided, that the Administrator will
not, without prior shareholder approval, exchange underwater Options or otherwise modify the exercise price or purchase price of
any Option or Award that has the effect of being a repricing. To the extent necessary and desirable, approval of the Company’s
shareholders shall be obtained for any amendment that would:

 

(a)               
except as set forth in Section 3 of the Plan, increase the total number of Shares reserved for issuance under the
Plan; or

(b)              
change the class of officers, directors, employees, consultants, and advisors eligible to participate in the Plan.

The Administrator may amend the terms of any Award
granted under the Plan, prospectively or retroactively, but, subject to Section 4 of the Plan, no such amendment shall impair the
rights of any Participant without his or her consent. Notwithstanding the previous sentence, the Administrator reserves the right
to amend the terms of any Award or Award Agreement as may be necessary or appropriate to avoid adverse tax consequences under Section
409A of the Code or to comply with any requirements under the Company’s “clawback” policy regarding incentive
compensation, or such “clawback” requirements under the Sarbanes–Oxley Act of 2002 or the Dodd-Frank Wall Street
Reform and Consumer Protection Act.

 

Section 12.
          Unfunded
Status of Plan.

The Plan is intended to constitute an “unfunded”
plan for incentive compensation. With respect to any payments not yet made to a Participant by the Company, nothing contained herein
shall give any such Participant any rights that are greater than those of a general unsecured creditor of the Company.

 

Section 13.
          General
Provisions.

(a)               
Shares shall not be issued pursuant to the exercise or settlement of any Award granted under the Plan unless the
exercise or settlement of such Award and the issuance and delivery of such Shares pursuant to such Award shall comply with all
relevant provisions of law, including, without limitation, the Securities Act of 1933, the Securities Exchange Act of

 
21

     

     

    

1934, withholding tax requirements and the requirements of
any stock exchange upon which the Common Stock may then be listed, and shall be further subject to the approval of counsel for
the Company with respect to such compliance. The Company may rely on an opinion of its counsel as to such compliance. Any share
certificate issued to evidence Common Stock for which an Award is exercised or issued may bear such legends and statements as the
Administrator may deem advisable to assure compliance with Federal and state laws and regulations.

(b)              
The Administrator may require each person acquiring Shares granted under the Plan to represent to and agree with
the Company in writing that such person is acquiring the Shares without a view to distribution thereof. All certificates for Shares
delivered under the Plan shall be subject to such stock-transfer orders and other restrictions as the Administrator may deem advisable
under the rules, regulations, and other requirements of the Securities and Exchange Commission, any stock exchange upon which the
Common Stock is then listed, and any applicable Federal or state securities law. The certificates for such Shares may include the
legend set forth below, or any other legend that the Administrator deems appropriate to reflect any restrictions on transfer for
such Shares.

“THE ISSUANCE OF THE SHARES REPRESENTED
BY THIS CERTIFICATE HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933. THE SHARES HAVE BEEN ACQUIRED FOR INVESTMENT AND
MAY NOT BE SOLD, TRANSFERRED OR ASSIGNED IN THE ABSENCE OF EITHER AN EFFECTIVE REGISTRATION STATEMENT FOR THESE SHARES UNDER THE
SECURITIES ACT OF 1933 OR AN OPINION OF COUNSEL THAT REGISTRATION IS NOT REQUIRED UNDER THE ACT.”

(c)               
Nothing contained in the Plan shall prevent the Board from adopting other or additional compensation arrangements.
The adoption of the Plan or granting of an Award shall not confer upon any Eligible Recipient any right to continued employment
with or service to the Company or any Subsidiary, as the case may be, nor shall it interfere in any way with the right of the Company
or any Subsidiary to terminate the employment or service of any Eligible Recipient at any time.

(d)              
Unless otherwise set forth in an applicable Award Agreement, a Participant may elect, no later than the date as of
which the value of an Award becomes includible in the gross income of the Participant for Federal income tax purposes (the “withholding
date”), to have the Company withhold vested whole shares of Common Stock deliverable upon the exercise of an Option or the
vesting of the Restricted Stock to satisfy (in whole or in part) the amount, if any, that the Company or any Subsidiary is required
to withhold for taxes; provided, however, that the amount of shares of Common Stock so withheld shall have a Fair
Market Value (as of the withholding date) that is not in excess of the amount determined by the Company to be equal to the applicable
minimum statutorily required withholding tax payments. Any such election shall be irrevocable.

To the extent that a Participant does not
make such an election, or such election does not fully satisfy such minimum statutorily required withholding tax payments, then
(x) the Company may require that the Participant pay to the Company, or make arrangements

 
22

     

     

    

satisfactory to the Company regarding payment
of, any Federal, state, or local taxes of any kind required by law to be withheld with respect to such Award, as a condition of
the exercise of any Option, (y) the Company may withhold vested whole shares of Common Stock deliverable upon exercise of an Option
or vesting of the Restricted Stock to satisfy (in whole or in part) the amount, if any, that the Company or any Subsidiary is required
to withhold for taxes; provided, however, that the amount of shares of Common Stock so withheld shall have a Fair
Market Value (as of the withholding date) that is not in excess of the amount determined by the Company to be equal to the applicable
minimum statutorily required withholding tax payments, and (z) the Company shall have the right to deduct from any payment of any
kind otherwise due to a Participant up to an amount equal to any federal, state or local taxes of any kind required by law to be
withheld in connection with the granting, vesting or exercise of an Award (not to exceed the amount determined by the Company to
be the applicable minimum statutorily required withholding tax payments). Upon request, the Participant shall reimburse the Company
for any taxes that the Company withholds that are not otherwise reimbursed as contemplated above in this Section 13(d).

(e)               
No member of the Board or the Administrator, nor any officer or employee of the Company acting on behalf of the Board
or the Administrator, shall be personally liable for any action, determination, or interpretation taken or made in good faith with
respect to the Plan, and all members of the Board or the Administrator and each and any officer or employee of the Company acting
on their behalf shall, to the extent permitted by law, be fully indemnified and protected by the Company in respect of any such
action, determination, or interpretation. Except to the extent prohibited by applicable law, the Administrator may delegate to
one or more individuals the day-to-day administration of the Plan and any of the functions assigned to it in this Plan. Such delegation
may be revoked at any time.

(f)                
If a Participant is an officer or director of the Company within the meaning of Section 16, Awards granted hereunder
shall be subject to all conditions required under Rule 16b-3, or any successor rule(s) promulgated under the Securities Exchange
Act of 1934, to qualify the Award for any exemption from the provisions of Section 16 available under such Rule. Such conditions
are hereby incorporated herein by reference and shall be set forth in the agreement with the Participant, which describes the Award.

(g)               
The Company shall be under no obligation to effect the registration pursuant to the Securities Act of 1933 of any
shares of Stock to be issued hereunder or to effect similar compliance under any state laws. Notwithstanding anything herein to
the contrary, the Company shall not be obligated to cause to be issued or delivered any shares of Stock pursuant to the Plan unless
and until the Company is advised by its counsel that the issuance and delivery of such shares is in compliance with all applicable
laws, regulations or governmental authority and the requirements of any securities exchange on which shares of Stock are traded.
The Administrator may require, as a condition of the issuance and delivery of shares of Stock pursuant to the terms hereof, that
the recipient of such shares make such covenants, agreements and representations, and that such shares, if certificated, bear such
legends, and if dematerialized, be so restricted, in each case, as the Administrator, in its sole discretion, deems necessary or
desirable.

Section 14.
          Section
409A of the Code.

 
23

     

     

    

Notwithstanding any provision in the Plan
to the contrary, no payment or distribution under this Plan that constitutes an item of deferred compensation under Section 409A
of the Code and becomes payable by reason of a Participant’s termination of employment or service with the Company will be
made to such Participant unless such Participant’s termination of employment or service constitutes a “separation from
service” (as defined in Section 409A of the Code). For purposes of this Plan, each amount to be paid or benefit to be provided
shall be construed as a separate identified payment for purposes of Section 409A of the Code. If a participant is a “specified
employee” (as defined in Section 409A of the Code), then to the extent necessary to avoid the imposition of taxes under Section
409A of the Code, such Participant shall not be entitled to any payments upon a termination of his or her employment or service
until the earlier of: (i) the expiration of the six-month period measured from the date of such Participant’s “separation
from service” or (ii) the date of such Participant’s death. Upon the expiration of the applicable waiting period set
forth in the preceding sentence, all payments and benefits deferred pursuant to this Section 14 (whether they would have otherwise
been payable in a single lump sum or in installments in the absence of such deferral) shall be paid to such Participant in a lump
sum as soon as practicable, but in no event later than 60 calendar days, following such expired period, and any remaining payments
due under this Plan will be paid in accordance with the normal payment dates specified for them herein.

Section 15.
          Notice.

All notices, requests, waivers, and other communications
required or permitted hereunder shall in writing and shall be either personally delivered, sent by reputable overnight courier
service or mailed by first class mail, return receipt requested, to the recipient at the address below:

 

Independence Bancshares, Inc.

500 East Washington Street

Greenville, SC 29601

Attn: Martha L. Long, Chief Financial Officer

 

or such other address or the attention of such other person as the
recipient party shall have specified by prior written notice to the sending party, or sent by other electronic means. All such
notices, requests, waivers and other communications shall be deemed to have been effectively given: (a) when personally delivered
to the party to be notified; (b) when sent by confirmed facsimile to the party to be notified; (c) five (5) business days after
deposit in the United States Mail postage prepared by certified or registered mail with return receipt requested at any time other
than during a general discontinuance of postal service due to strike, lockout, or otherwise (in which case such notice, request,
waiver or other communication shall be effectively given upon receipt) and addressed to the party to be notified as set forth above;
or (d) two (2) business days after deposit with a national overnight delivery service, postage prepaid, addressed to the party
to be notified as set forth above with next-business-day delivery guaranteed. A party may change its or his notice address given
above by giving the other party ten (10) days' written notice of the new address in the manner set forth above.

 
24

 

     

     

    

Section 16.
          Governing
Law and Interpretation.

The Plan and all Awards made and actions taken thereunder
shall be governed by and construed in accordance with the laws of the State of South Carolina,
without reference to principles of conflict of laws.

 

Section 17.
          Severability.

If, for any reason, any provision of this Plan is held invalid,
such invalidity shall not

affect any other provision of this Plan not held so invalid, and
each such other provision shall to the full extent consistent with law continue in full force and effect. If any provision of this
Plan shall be held invalid in part, such invalidity shall in no way affect the rest of such provision not held so invalid, and
the rest of such provision, together with all other provisions of this Plan, shall to the full extent consistent with law continue
in full force and effect.

 

Section 18.
          Term
of Plan.

The Plan shall be effective as of the Effective
Date. No Award shall be granted pursuant to the Plan on or after the tenth anniversary of the Effective Date, but Awards granted
under the Plan prior to the tenth anniversary of the Effective Date may extend beyond the tenth anniversary of the Effective Date
pursuant to the terms of the Award as provided for under the Plan and the terms of the applicable Award Agreement.

 

 

*   *   *   *   *

 

 

IN WITNESS WHEREOF, the Board of Directors of
the Company has adopted this Independence Bancshares, Inc. 2013 Equity Incentive Plan, to be executed on behalf of the Company
by a duly designated officer of the Company, as of the day and year first above written as the Effective Date.

 

INDEPENDENCE BANCSHARES, INC.

 

By: __/s/ Gordon A. Baird _____

 

Name: Gordon A. Baird

 

Title: CEO

 

 
25Exhibit 10.3

Independence Bancshares, Inc.

2013 Equity Incentive Plan

Restricted Stock Award Grant Notice

 

 

	Participant Name:	 [Name]
	 	
	Company:	Independence Bancshares, Inc.
	 	
	Notice:	A summary of the terms of your grant of Restricted Shares is set out in this notice (the “Grant Notice”) but subject always to the terms of the Independence Bancshares, Inc. 2013 Equity Incentive Plan (the “Plan”) and the Restricted Stock Award Agreement (the “Award Agreement”).  In the event of any inconsistency between the terms of this Grant Notice, the terms of the Plan and the Award Agreement, the terms of the Plan and the Award Agreement shall prevail.
	 	
	Type of Award:	Restricted Stock Award
	 	
	Stock:	Shares of common stock, $0.01 par value per share, of the Company
	 	
	Number of Shares
 of Stock Subject
 to Grant:	 _______________ shares of Stock
	 	
	Grant Date:	[Date]
	 	
	Vesting Schedule:	Restricted Shares granted will vest (i.e., restrictions shall lapse) in accordance with the following schedule, provided that you have provided continuous employment to the Company or any Related Company through each such vesting date:
	 	
	 	First anniversary of the Grant Date – [   ] vested
	 	
	 	Second anniversary of the Grant Date – an additional [    ] vested
	 	
	 	Third anniversary of the Grant Date – an additional [       ] vested.
	 	
	 	In addition, the Restricted Shares granted will not vest until [insert performance vesting condition, if applicable].
	 	
	 	In the event of a Change of Control, all unvested Restricted Shares will automatically vest in full immediately prior to the consummation of the Change of Control.
	 	
	Acceptance:	You acknowledge receipt of, and understand and agree to, this Grant Notice, the Award Agreement and the Plan. You further acknowledge
	 	

 
26

     

     

    

	 	that as of the Grant Date, this Grant Notice, the Award Agreement and the Plan set forth the entire understanding between you and the Company or any Related Company regarding the Restricted Shares and supersede all prior oral and written Award Agreements on the subject.

 

 

IN WITNESS WHEREOF, the Company and the Participant
have duly executed and delivered this Grant Notice as of the Grant Date.

Independence
Bancshares, Inc.PARTICIPANT

 

By: ________________________________      _____________________________

Print Name: _________________________      [Name]

Title: ______________________________      Address: _____________________

____________________________

____________________________

 

Attachments:

1.      
Restricted Stock Award Agreement

2.      
2013 Equity Incentive Plan

 
27

     

     

    

 

Independence Bancshares, Inc.

Restricted Stock Award Agreement

Pursuant to the Restricted Stock Grant
Notice (the “Grant Notice”) and this Restricted Stock Award Agreement (this “Award Agreement”),
Independence Bancshares, Inc. (the “Company”) has granted the Participant, as identified in the Grant Notice,
the number of restricted shares of the Company's Common Stock under the Company's 2013 Equity Incentive Plan (the “Plan”)
indicated in the Grant Notice (the “Restricted Shares”). Capitalized terms not defined in this Award Agreement
but defined in the Plan or the Grant Notice will have the same definitions as in the Plan or the Grant Notice, respectively.

1.                 
Restrictions and Vesting Schedule. The Restricted
Shares are being awarded to Participant subject to the transfer and forfeiture conditions set forth in this Award Agreement and
the Plan (the "Restrictions"). Subject to the provisions of Section 2 below, the Restricted Shares will vest,
and Restrictions shall lapse, as provided in the Participant's Grant Notice. The period from the Date of Grant through the last
Vesting Date set forth in the Grant Notice is referred to as the "Restriction Period". Except to the extent vesting
accelerates pursuant to the terms of the Grant Notice or Section 2 below, any unvested Restricted Shares shall be automatically
forfeited upon Participant's Termination from Service. 

2.                 
Acceleration of Vesting. All unvested Restricted
Shares shall fully vest upon Participant's Termination from Service by the Company (i) [insert relevant provision, if applicable],
or (ii) for reason of death or Disability of the Participant.

3.                 
Assignment or Transfer of Shares. Unless otherwise
provided by the Board, prior to the vesting of the Restricted Shares, Participant may not directly or indirectly, by operation
of law or otherwise, voluntarily or involuntarily, sell, assign, pledge, encumber, charge or otherwise transfer any of the Restricted
Shares still subject to Restrictions. The Restricted Shares shall be forfeited if Participant violates or attempts to violate these
transfer Restrictions. After any Stock has been released from the Restrictions, Participant shall not directly or indirectly, by
operation of law or otherwise, voluntarily or involuntarily, sell, assign, pledge, encumber, charge or otherwise transfer any interest
in the Stock except in compliance with the provisions herein and the provisions of applicable securities laws.

4.                 
Delivery of Shares. [to be determined]
  

5.                 
Rights of Participant. Subject to the provisions
of this Award Agreement, Participant shall exercise all rights and privileges of a shareholder of the Company with respect to the
Restricted Shares deposited pursuant to Section 4. Participant shall be deemed to be the holder for purposes of receiving any dividends
that may be paid with respect to such shares of Stock and for the purpose of exercising any voting rights relating to such shares
of Stock, even if some or all of such shares of Stock have not yet vested and been released from the Restrictions.

6.                 
Restrictive Legends. Certificates representing
the Stock shall have endorsed thereon a legend in substantially the following form:

“THE SHARES
REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO RESTRICTIONS SET FORTH IN A RESTRICTED STOCK AWARD AGREEMENT BETWEEN THE COMPANY
AND THE REGISTERED HOLDER, OR SUCH HOLDER’S PREDECESSOR IN INTEREST, A COPY OF WHICH IS ON FILE AT THE PRINCIPAL OFFICE OF
THE COMPANY. ANY TRANSFER OR ATTEMPTED TRANSFER OF ANY

 
28

     

     

    

SHARES SUBJECT
TO SUCH RESTRICTED STOCK AWARD IS VOID WITHOUT THE PRIOR EXPRESS WRITTEN CONSENT OF THE COMPANY.”

The Company shall remove
or cause the removal of the foregoing legend as and to the extent of the lapse of the applicable Restrictions.

7.                 
Section 83(b) Election. Participant understands
that Section 83(a) of the Code taxes as ordinary income the difference between the amounts paid for the Stock and the fair market
value of the Stock as of the date any Restrictions on the Stock lapse. Participant understands that Participant may elect to be
taxed at the time the Restricted Shares are granted rather than when and as the Restrictions lapse, by filing an election under
Section 83(b) (“83(b) Election”) of the Code with the Internal Revenue Service within thirty (30) days
from the Date of Grant. Even if the fair market value of the Restricted Shares at the time of the Grant equals the amount paid
for the Stock, if any, the 83(b) Election must be made to avoid income under Section 83(a) in the future. Participant understands
that failure to file such an 83(b) Election in a timely manner may result in adverse tax consequences for Participant. Participant
further understands that an additional copy of such 83(b) Election is required to be filed with his or her federal income tax return
for the calendar year in which the Grant Date in connection with this Award Agreement falls. Participant further acknowledges
and understands that it is Participant’s decision as to whether to file such 83(b) Election, and neither the Company nor
the Company’s legal or financial advisors shall have any obligation or responsibility with respect to such filing. Participant
acknowledges that the foregoing is only a summary of the effect of United States federal income taxation with respect to purchase
of the Stock hereunder, and does not purport to be complete. Participant further acknowledges that the Company has directed Participant
to seek independent advice regarding the applicable provisions of the Code, the income tax laws of any municipality, state or foreign
country in which Participant may reside, and the tax consequences of Participant’s death. Participant assumes all responsibility
for filing an 83(b) Election and paying all taxes resulting from such election or the lapse of the Restrictions on the Stock. 

8.                 
Refusal to Transfer. The Company shall not
be required to transfer on its books any shares of Stock of the Company which shall have been transferred in violation of any of
the provisions set forth in this Award Agreement. 

9.                 
No Employment Rights. This Award Agreement
is not an employment contract and nothing in this Award Agreement shall confer upon the Participant any right to continued employment
with or service to the Company or any Subsidiary, as the case may be, nor shall it interfere in any way with the right of the Company
or any Subsidiary to terminate the employment or service of the Participant at any time.

10.             
Governing Plan Document. The Restricted Shares
granted hereunder are subject to all the provisions of the Plan, the provisions of which are hereby incorporated by reference herein,
and is further subject to all interpretations, amendments, rules and regulations which may from time to time be promulgated and
adopted pursuant to the Plan. Capitalized terms used herein and not defined shall have the meanings assigned in the Plan. In the
event of any conflict between the provisions of this Award Agreement and those of the Plan, the provisions of the Plan shall control.

11.             
Adjustments. The Restricted Shares shall be
subject to adjustments as provided in Sections 4, 9, 10, 11 and 14 of the Plan.

12.             
Acknowledgements. No waiver of any breach
of any provision of this Award Agreement by the Company shall be construed to be a waiver of any succeeding breach or as a modification
of such provision. 

 
29

     

     

    

13.             
Miscellaneous. 

(a)              
Notices. All notices required or permitted hereunder
shall be in writing and shall be deemed effectively given: (a) when personally delivered to the party to be notified; (b) when
sent by confirmed facsimile to the party to be notified; (c) five (5) business days after deposit in the United States Mail
postage prepared by certified or registered mail with return receipt requested at any time other than during a general discontinuance
of postal service due to strike, lockout, or otherwise (in which case notice, request, waiver or other communication shall be effectively
given upon receipt) and address to the party to be notified as set forth above; or (d) two (2) business day after deposit
with a national recognized overnight delivery service, postage prepaid, addressed to the party to be notified as set forth above
with next-business-day delivery guaranteed. A party may change its notice address by giving the other party ten (10) days' written
of the new address in the manner set forth above. 

(b)              
Successors and Assigns.  This Award Agreement shall
inure to the benefit of the successors and assigns of the Company and, subject to the restrictions on transfer herein set forth,
be binding upon Participant, Participant’s successors, and assigns. 

(c)               
Attorneys’ Fees; Specific Performance.  Each
party shall be responsible for its own respective costs and expenses (including, without limitation,
attorneys’ fees and costs) in connection with any action brought by any party to enforce its rights hereunder or any other
legal action involving this Award Agreement or any party’s performance hereunder. 

(d)              
Governing Law; Venue. This Award Agreement shall
be governed by and construed in accordance with the laws of the State of South Carolina, without reference to principles of conflict
of laws. The parties agree that any action brought by either party to interpret or enforce any provision of this Award Agreement
shall be brought in, and each party agrees to, and does hereby, submit to the jurisdiction and venue of, the appropriate state
or federal court for the district encompassing the Company’s principal place of business.

(e)              
Entire Award Agreement; Amendment. This Award Agreement,
along with the Grant Notice and the Plan constitute the entire Award Agreement between the parties with respect to the subject
matter hereof and supersedes and merges all prior agreements or understandings, whether written or oral. This Award Agreement may
only be amended as described in Section 11 of the Plan.

 

 
30

     

     

    

 

 

ATTACHMENT A

ELECTION UNDER SECTION 83(B)

OF THE INTERNAL REVENUE CODE OF 1986

 

The undersigned taxpayer hereby elects, pursuant
to §83(b) of the Internal Revenue Code, to include in taxpayer's gross income or alternative minimum tax income, as applicable,
for the current taxable year, the amount of any income that may be taxable to taxpayer in connection with taxpayer's receipt of
the property described below:

 

1.         The taxpayer's name, address and taxpayer identification
number are as follows:

 

Name:_________________________________________

Address:_______________________________________

________________________________________

SS#_______________________________________

 

2.                 
Description of property with respect to which the election is being made:

 

__________ shares of Common Stock of Independence Bancshares,
Inc., a South Carolina corporation (the “Company") granted pursuant to a Restricted Stock Award under the Company's
Equity Incentive Plan.

 

3.                 
The date on which the property was transferred is.

 

The taxable year for which the election is made
is calendar year 2___.

 

4.                 
The property is subject to the following restrictions:

 

The Restricted Shares are subject to a vesting schedule
pursuant to which restrictions on transfer will lapse.

 

5.         The fair market value at time of transfer (determined
without regard to any restriction other than a restriction which by its terms will never lapse) of such property is $________________.

 

6.         Amount paid for property:

 

The stock is being purchased for _____________
per share.

 

7.         Furnishing statement to employer:

 

A copy of this statement has been furnished
to the Company.

 

 

Dated: _________ __, 20            _______________________________________

Taxpayer: 

 

 

 

 

 
31

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