diff --git a/governance/governance.go b/governance/governance.go
index 862838a9e..b074d7d34 100644
--- a/governance/governance.go
+++ b/governance/governance.go
@@ -523,6 +523,12 @@ func (w *GovernanceWorker) governAgreements() {
 
 						// The proposal for this agreement is no longer compatible with the node's policy, so cancel the agreement.
 						glog.V(3).Infof(logString(fmt.Sprintf("current proposal for %v is out of policy: %v", ag.CurrentAgreementId, err)))
+						glog.V(3).Infof(logString(fmt.Sprintf("terminating agreement %v because it cannot be verified by the agreement bot.", ag.CurrentAgreementId)))
+						reason := w.producerPH[ag.AgreementProtocol].GetTerminationCode(producer.TERM_REASON_POLICY_CHANGED)
+						eventlog.LogAgreementEvent(w.db, persistence.SEVERITY_INFO,
+							persistence.NewMessageMeta(EL_GOV_START_TERM_AG_WITH_REASON, ag.RunningWorkload.URL, w.producerPH[ag.AgreementProtocol].GetTerminationReason(reason)),
+							persistence.EC_CANCEL_AGREEMENT, ag)
+						w.cancelGovernedAgreement(&ag, reason)
 
 					} else {
 						glog.V(5).Infof(logString(fmt.Sprintf("agreement %v is still in policy.", ag.CurrentAgreementId)))