You should terminate after she treated you with such lack of respect. Sorry to be the one to say this, but you just made Mistake number 3. You allowed her to break the contract by dropping off early at 7am. You can't expect her to take your contract seriously if you will allow her to break the rules. You should have either said flat out no, or offered it to her as an exception as you did but WITH EARLY DROP OFF FEES. You are giving her 30 minutes of your time for free, and she questioned the need for your contract but then you immediatly allowed her to break it without consequence. IMO and experience, you've just opened the door for her to take furthur advantage of you in the future and I think if I was in your situation, a term letter would be given at pick up today. You don't deserve to be treated like this and she clearly has such little regard for you and the no doubt excellent care you provide, that she doesnt deseve you and you should hold out for better.

Good Luck