asked for a raise, boss wanted sex in return - has this happened to you? what to do?

ive been working for this company for two years and havent gotten a raise. i love working there but this now has me really freaked out. i went in last week to ask my boss for a raise, and he, jokingly i thought, said that 'for that kind if money, i better start offering benefits of my own'. he laughed and said he was kidding but now super uncomfortable. has this happened to you? how should i handle? dont want to leave...