diff --git a/orte/mca/errmgr/default_orted/errmgr_default_orted.c b/orte/mca/errmgr/default_orted/errmgr_default_orted.c
index b3da90a9c2..d16328bb08 100644
--- a/orte/mca/errmgr/default_orted/errmgr_default_orted.c
+++ b/orte/mca/errmgr/default_orted/errmgr_default_orted.c
@@ -149,12 +149,13 @@ static int update_state(orte_jobid_t job,
     }
 
     OPAL_OUTPUT_VERBOSE((10, orte_errmgr_base.output,
-                "errmgr:default_orted:update_state() %s) "
-                "------- %s state updated for process %s",
-                ORTE_NAME_PRINT(ORTE_PROC_MY_NAME),
-                ((NULL == proc) ? "App. Process" : 
-                 (proc->jobid == ORTE_PROC_MY_HNP->jobid ? "Daemon" : "App. Process")),
-                (NULL == proc) ? "NULL" : ORTE_NAME_PRINT(proc)));
+                         "errmgr:default_orted:update_state() %s) "
+                         "------- %s state updated for process %s to %s",
+                         ORTE_NAME_PRINT(ORTE_PROC_MY_NAME),
+                         ((NULL == proc) ? "App. Process" : 
+                          (proc->jobid == ORTE_PROC_MY_HNP->jobid ? "Daemon" : "App. Process")),
+                         (NULL == proc) ? "NULL" : ORTE_NAME_PRINT(proc),
+                         orte_proc_state_to_str(state)));
 
     /* if this is a heartbeat failure, let the HNP handle it */
     if (ORTE_JOB_STATE_HEARTBEAT_FAILED == jobstate ||
@@ -276,6 +277,20 @@ static int update_state(orte_jobid_t job,
              */
             orte_quit();
         }
+        /* was it a daemon that failed? */
+        if (proc->jobid == ORTE_PROC_MY_NAME->jobid) {
+            /* if all my routes are gone, then terminate ourselves */
+            if (0 == orte_routed.num_routes() &&
+                    0 == opal_list_get_size(&orte_local_children)) {
+                orte_quit();
+            } else {
+                OPAL_OUTPUT_VERBOSE((5, orte_errmgr_base.output,
+                            "%s errmgr:orted not exiting, num_routes() == %d, num children == %d",
+                            ORTE_NAME_PRINT(ORTE_PROC_MY_NAME),
+                            (int)orte_routed.num_routes(),
+                            (int)opal_list_get_size(&orte_local_children)));
+            }
+        }
         /* if not, then indicate we can continue */
         return ORTE_SUCCESS;
     }
diff --git a/orte/mca/routed/binomial/routed_binomial.c b/orte/mca/routed/binomial/routed_binomial.c
index 366a089459..1aa847abf4 100644
--- a/orte/mca/routed/binomial/routed_binomial.c
+++ b/orte/mca/routed/binomial/routed_binomial.c
@@ -32,7 +32,6 @@
 #include "orte/util/nidmap.h"
 #include "orte/runtime/orte_globals.h"
 #include "orte/runtime/orte_wait.h"
-#include "orte/runtime/orte_quit.h"
 #include "orte/runtime/runtime.h"
 #include "orte/runtime/data_type_support/orte_dt_support.h"
 
@@ -841,22 +840,15 @@ static int route_lost(const orte_process_name_t *route)
              item = opal_list_get_next(item)) {
             child = (orte_routed_tree_t*)item;
             if (child->vpid == route->vpid) {
-                OPAL_OUTPUT_VERBOSE((4, orte_routed_base_output,
-                                     "%s routed_binomial: removing route to child daemon %s",
-                                     ORTE_NAME_PRINT(ORTE_PROC_MY_NAME),
+                OPAL_OUTPUT_VERBOSE((4, orte_routed_base_output, 
+                                     "%s routed_binomial: removing route to child daemon %s", 
+                                     ORTE_NAME_PRINT(ORTE_PROC_MY_NAME), 
                                      ORTE_NAME_PRINT(route)));
                 opal_list_remove_item(&my_children, item);
                 OBJ_RELEASE(item);
                 return ORTE_SUCCESS;
             }
         }
-        /* if we are the HNP or daemon, AND we are terminating,
-         * then we want to finalize if all our child daemons
-         * have left
-         */
-        if (orte_terminating && 0 == opal_list_get_size(&my_children)) {
-            orte_quit();
-        }
     }
 
     /* we don't care about this one, so return success */
diff --git a/orte/orted/orted_comm.c b/orte/orted/orted_comm.c
index 82a4fa1d62..92bde82709 100644
--- a/orte/orted/orted_comm.c
+++ b/orte/orted/orted_comm.c
@@ -743,8 +743,6 @@ int orte_daemon_process_commands(orte_process_name_t* sender,
             opal_output(0, "%s orted_cmd: received exit cmd",
                         ORTE_NAME_PRINT(ORTE_PROC_MY_NAME));
         }
-        /* flag that we are terminating */
-        orte_terminating = true;
         /* kill the local procs */
         orte_odls.kill_local_procs(NULL);
         /* trigger our appropriate exit procedure
diff --git a/orte/runtime/orte_init.c b/orte/runtime/orte_init.c
index 5a607e945d..ee9ad47705 100644
--- a/orte/runtime/orte_init.c
+++ b/orte/runtime/orte_init.c
@@ -51,7 +51,6 @@
  */
 bool orte_initialized = false;
 bool orte_finalizing = false;
-bool orte_terminating = false;
 bool orte_debug_flag = false;
 int orte_debug_verbosity;
 char *orte_prohibited_session_dirs = NULL;
diff --git a/orte/runtime/orte_quit.c b/orte/runtime/orte_quit.c
index c0fa3dff18..5e3a711f1a 100644
--- a/orte/runtime/orte_quit.c
+++ b/orte/runtime/orte_quit.c
@@ -143,9 +143,6 @@ void orte_quit(void)
         return;
     }
 
-    /* flag that we are finalizing */
-    orte_finalizing = true;
-
     /* whack any lingering session directory files from our jobs */
     orte_session_dir_cleanup(ORTE_JOBID_WILDCARD);
 
diff --git a/orte/runtime/runtime.h b/orte/runtime/runtime.h
index 814fe2b3c0..60578d71d0 100644
--- a/orte/runtime/runtime.h
+++ b/orte/runtime/runtime.h
@@ -43,7 +43,6 @@ ORTE_DECLSPEC extern const char orte_version_string[];
  */
 ORTE_DECLSPEC extern bool orte_initialized;
 ORTE_DECLSPEC extern bool orte_finalizing;
-ORTE_DECLSPEC extern bool orte_terminating;
 ORTE_DECLSPEC extern int orte_debug_output;
 ORTE_DECLSPEC extern bool orte_debug_flag;