Questions in Regards to Selling/Trading iPad

I'm planning on selling my iPad to one of my friends, as I'm eventually going to upgrade to a bigger model since I currently have the 16gig model. I'm assuming I would do so without the sim Included, as I could use It In the new ipad I purchase. (I'm on the unlimited plan and don't want to lose It.)
My questions are.....
1. Would my friend need to get a sim from AT&T or take the ipad to an Apple store?
2. I'm assuming I won't have no trouble using my current sim In a new ipad? I should be able to stick In the sim and have It work, correct?
3. When I restore the ipad, do I need to do so with or without the sim card Inside the ipad? I know I'll need to do a complete back up first, but unsure of the sim situation.
I would appreciate any help at all!

I appreciate the helpful responses!
I was told by one of the employees at the Apple store I called, that I wouldn't need to remove the sim and just simply delete my 3G account Information. Then on my new iPad, set It up/log In with the same Information I had on the previous one and I would still retain my account. I wouldn't have any problems restoring the iPad with the sim Inside the device as well.
I don't see a way to actually delete the Information since you would have to log In to your account beforehand. Would I need to log In and delete all the account Information or just simply complete a backup and restore the device?

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