*EDIT I was slow. Our INGO advisors have already beat me to the punch with actual relevant case law.
Likely this would be FINE (though IAANAL). That's just open carry w/o a holster. No requirement listed in IC that your handgun must be holstered.
Though, your other actions with the handgun in your hands could present issues.
At the low ready, pointed in a safe direction while giving verbal commands? No problem.
Pointed at someone w/o cause, or waving around and ranting to yourself? Likely problems.
I think that covers it for us common folk.
Was that before or after he saw your gun?
After i pulled my shirt up to show him he ran.