Breaking Daycare Contract (in Ca)

Hi all - looking for any legal knowledge / tips we can get.

My wife and I have a 10 month-old who started daycare (located in CA) in February 2024. We signed a contract through August 31, 2024 and due to concerns of his safety / well-being we want to get him out of there ASAP (it's currently May 16).

The issues:

• Last week he was sleeping when I picked him up, and I noticed a pillow in his crib. They said he had been sleeping for 40 minutes at that point. In email exchanges with the lead teacher, she said he must have pulled it in through the crib bars from a nearby rocking chair when he was falling asleep. Legally, they are supposed to check on him every 15 minutes, so I asked why nobody noticed the pillow in his crib for 40 minutes. She admitted that they noticed the pillow but it wasn't anywhere near his face, so they left it because they didn't want to wake him up.
• Yesterday, my wife went to pick him up and the lead teacher asked her to sign an incident report. It was a head injury from the PREVIOUS DAY. Since his head injury, we had interacted with teachers 3 times - at pickup the same day, via email from the head teacher telling us that he needed diapers (on the night of the incident), and at drop off the next day. Nobody said a thing until more than 24 hours after the incident. We understand that he's going to get injured as he learns to walk, etc, but we'd expect to be made aware of a head injury so we could monitor him.

At this point, we know we need to get him out (and have other care lined up), but we cannot afford to agree with the terms we signed in the contract:

• 60 day written notice required
• Full payment of 60 days of tuition ($3,780)
• Forfeiture of deposit ($1,890)

We have read that we can walk away without paying the 60 day tuition and let the daycare center take us to small claims court, and then address their negligence there, but we also did agree to an indemnity clause, which I don't fully understand what it means. My understanding is that the daycare can't be held liable for violations of the law/contract???

SO, main questions are:

1. Are we protected in anyway / is there any way out of this without losing almost $6k? Can we prove negligence / that THEY also broke their side of the contract and walk away without having to pay, and possibly even get the deposit back?
2. Is the indemnity agreement going to screw us from holding them liable for anything?

Thank you in advance, Reddit!!