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wingrider01 wrote:

Or take it to a Apple store and ask them how much to replace the screen - price wil vary depending on what  exactly is broken. Other option is a 199.00 out of warrenty replacement at the apple store

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OP had indicated that he/she is looking to get an iPhone 5 (emphasis mine):

"So I am wondering if there is a way that I can get an early upgrade to get iphone 5 with 2 years extension contract? Inculded fee waived?"

"Well since I decided it's time for me to get another iphone istead of 4. So I am curious if there is another way to get iphone 5 cheaper than 599 discount price?"

Thus it would seem that, as far as OP is concerned, screen replacement is not an acceptable option, given his/her comments...and I doubt that, at least for the foreseeable very near future, Apple won't be giving OP an iPhone 5 to replace his/her iPhone 4 if OP elects to go with the $199 replacement option.