Keep the fry man! you will love raising them, if in time you dont want them you can sell them on. labs seem to reach a fair price where i am. A tank full of labs looks great! good luck!
Definitely holding...I usually wait 2 full weeks after I notice the female is holding and then strip them out of her mouth into a seperate tank or divided out tank. Keep the female in a seperate tank also so that she can begin eating again and plump up so that the male does not beat her up when she is reintroduced to the main tank. Congrats on the babies! They will keep on breeding about every 4 weeks now for you.