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Zarathos was once an angel of God and the Spirit of Justice whose purpose was to protect man. He was later tricked and taken to hell where he was tortured to the point of insanity. He became a twisted version of his former self, acting on extreme measures of punishing anyone who has done wicked deeds, no matter what they where. He became the Spirit of Vengeance and the operative of the devil. The devil uses the spirit of Zarathos to empower certain individuals with his power to become the Ghost Rider.
In the present, many time has passed since Johnny made his deal, now going insane trying to contain Zarathos within him. Unable to fully control the power of the Rider, Johnny has gone on the run; ending up in Eastern Europe trying nightly to suppress the demon within him. One day, he is approached by a man named Moreau who offers to lift the curse of the Rider from him if he helps him find the half-human son of the Devil (now going by the name Roarke) before he can transfer his essence into the boy's body.
As the Ghost Rider, he could locate the boy, called Danny, and tried to track him down while the boy's mother did the same. However, Roarke hired a man, who already knew Nadya, Danny's mother, to deliver the boy to him. After Johnny recover Danny along with Nadia, he left them with Moreau's monks while getting rid of his curse, despite Danny's protests. Before he could get rid of the curse, Roarke told the story of the ghost rider. Johnny even asked if the Spirit of Justice was still "alive" somewhere within Zarathos.
After Zarathos's exorcism, the monks tried to kill Danny for representing a treat to humanity as the son of the devil. However, they are stopped and killed by Blackout, the one who Roarke hired, now empowered by the devil. Danny was gone and only Johnny, Nadya and Moreau are left alive. The trio tried to recover Danny, but Moreau was killed in the process. Fortunately, the ritual that would transfer Roarke into Danny's body was stopped and Danny, realizing that he possessed the same powers has Mephisto's, gave Johnny his curse back but passed out soon after.
Back with his powers, Johnny killed all the devil's allies around him and realized that he cold now become the Ghost Rider at sun light. He got his Motorcycle and went after Roarke while Nadya still assisted him. In the way, he killed Blackout, and after stopping Roarke, he sent him back to hell, something he could do now with him since their deal was no longer valid because Johnny now possesses the Ghost Rider via Danny instead of via Mephisto.
Since Zarathos finally punished Mephisto, he was able to return in his angelic form, yet still inside of Johnny's body, as a blue-flamed Ghost Rider, which represented his change of character. Now that the angel returned to his former self, Johnny is able to manipulate his angelic energy when transformed. At the end, this came in handy since Danny was almost dying, Johnny used the miraculous powers of the Ghost Rider/Zarathos to heal him. When he asked if they won, Johnny gladly said: "I gonna say yes. Hell Yes!"