The Gaze of the Gods gives the wearer a Ward Save (4+). However, if the model flees for any reason, the wrath of the Chaos gods is visited upon him. After working out the Flee move, the model is turned into a Chaos Spawn, with the same number of wounds remaining as the character had. If you do not have a Spawn model to replace the character then he simply counts as slain. For Victory Points purposes, the character is not counted as slain or below half Wounds unless the Spawn he has turned into is slain or is below half Wounds.