What happens to an iPhone 5 after the plan expires?

I'm a resident outside of the United States and don't quite understand how this all works.

If my relative purchases an iphone 5 for $199 from Verizon( or any other carrier) can I use my own methods (suchs as GPP Sim unlock) to unlock the phone for use of the phone on carriers outside of the US?

Or does it mean the phone will have a bad ESN and I can't use it?

Verizon iPhone 5 are sold unlocked, by default. So you don't need to buy GPP SIM and risk your phone. Your relative will buy the phone with contract and will have to pay the bill.

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