Former UFC champ B.J. Penn could go to prison for five years and pay a fine of up to $10,000 if convicted on a charge of second-degree assault stemming from an incident this past January.

But he could also steer clear of punishment if he pays the medical bills of a childhood friend he allegedly assaulted at a bar, according to the Maui Prosecuting Attorney’s office.

The alleged victim, a 37-year-old male, indicated to the prosecutor’s office that he would be satisfied if that condition is met, deputy prosecutor John Tam today told MMAjunkie. The office is now waiting on Penn to decide whether or not it will pursue the charge.

“(Penn’s) attorney was supposed to check on the extent of the billings, and we would also be checking with the victim thereafter,” deputy prosecutor John Tam today told MMAjunkie.

Penn was arrested after allegedly tussling with his friend outside Kahale’s Bar in Kihei, which is on the island of Maui. The friend “sustained injuries” and was treated and released from a local hospital.

The editor of Penn’s website, BJPenn.com, said the retired fighter was acting in self-defense during the alleged incident. MMAjunkie was unable to reach Penn or his manager and brother, J.D. Penn, for comment on his plan of action.

“(Penn’s lawyer) has indicated that, from what I can tell, they want to take care of everything as far as the medical bills,” Tam said.

Penn (16-10-2 MMA, 12-9-2 UFC), 36, retired this past July after a TKO loss to Frankie Edgar. It was his third straight loss in the UFC’s octagon and third setback to the ex-lightweight champ.