mafiasoldier,
As I understand it you have a 2 part question.
First, can you change the name on the account without extending the contract, or having your friend have to pay the $175 early termination fee? I do not know if this is possible, you would need to contact AT&T.
Second, you want to port a number over from Verizon, even though it isn't a new activation? From previous experience working with AT&T, this is possible. You would need to contact AT&T and talk to their porting department for assistance.
Hope this helps,
Nathan C.