C.W. Haynes and Co. Inc., Columbia, S.C., and President W.E. Sellars have agreed to pay the companys profit-sharing plan $1.09 million to settle a lawsuit filed by the Labor Departments pension office on June 18. Under the settlement, the defendants will buy out the plans 40% ownership in the Folly Fontaine Commerce Center, a real estate partnership, and also pay the fair market value of a loan taken by the partnership from the profit-sharing plan. The Labor Departments lawsuit alleged that the defendants unwisely invested more than $3.3 million of the plans $4.78 million in assets at the end of June 1996 in real estate and a related partnership, and when they lent as much as $1.4 million to the Folly Fontaine partnership to buy land. The settlement also requires the defendants to diversify the plans assets as soon as possible, to refrain from investing in real estate or related ventures unless they are prudent, and to amend its provisions, effective June 30, to allow participants to request and receive distributions when they leave their jobs.