FREMONT, Calif. (AP) — A North California Toyota dealership has agreed to pay $400,000 to five former Afghan-American employees who say a manager called them terrorists and threatened them.

The Fremont Argus reports (http://bit.ly/NAH5Cy ) that Fremont Toyota's former general manager allegedly called four salesmen names and threatened to blow them up with a grenade in a 2007 staff meeting.

A spokesman for the U.S. Equal Employment Opportunity Commission says the Afghan-American salesmen resigned after facing harassment for reporting the abuse and a manager was fired for also complaining.

The general manager has since left the dealership. The new manager and the attorney representing Fremont Toyota declined to comment to the Fremont Argus.

As part of the settlement, the EEOC says Fremont Toyota has also agreed to train its managers about discrimination and will report to the commission for three years.