When SpongeBob finds an old, blackened and moldy patty under the grill he tries throwing it out, however, Mr Krabs will not let him and orders him not to make another patty until that one is sold. This results in the Krusty Krab losing weeks worth of business. Squidward tells him that the patty has gone bad but Eugene dismisses such a notion. He decides to prove it by eating the patty. Before he eats it, he sees an ambulance passing the Krusty Krab. He eats the old patty and he is rushed to the hospital minutes later.
Later, in the hospital, the Flying Dutchman appears to condemn him in Davy Jones’ Locker. Mr. Krabs begs to be freed, and the Dutchman does, as long as he will be always generous from there on. Mr. Krabs began to treat everyone at the Krusty Krab nicer with the ”employee lounge” and free refills. After he receives a $10,000 hospital bill, he claims that he is just dreaming and that there is nothing to worry about. After SpongeBob tells him otherwise, he realizes that the whole thing was reality.
He revokes all the free things he gave to the customers and threatens to rip off one’s arm over a penny. The Dutchman returns to take him back to the Locker. But SpongeBob bets that Mr. Krabs is generous, and bets that he would pick him over money. Mr. Krabs takes the money, sending SpongeBob to Davy Jones’ Locker. Squidward chews Mr. Krabs out for selling SpongeBob’s soul for sixty-two cents. Mr. Krabs sees the error of his ways, and rejects the money. The Flying Dutchman returns with SpongeBob to return him, not because of Mr. Krabs’ repenting, but because SpongeBob was too annoying.