Sexual intercourse or any other sexual activity is something you should always feel comfortable with, each and every time and with each and every partner. If you are at all uneasy about things before sex, it's a good idea not to move forward until you feel more comfortable and have thought things through.

It really sounds like this guy is using sex as some kind of weird bargaining chip, which is totally uncool and not the way I'd suggest anyone start a relationship, sexual or otherwise. No one should ever use sex as a way to manipulate or otherwise control how another person should act. This guy should want to date you because you are super cool and interesting to him as a person, not merely as his next conquest, and his sex stipulation is a glaring sign that he doesn't sound like a candidate for Mr. Sensitive and Caring Boyfriend, but more like Mr. Out Only For Himself.

I would tell this guy to go look elsewhere for his next stroll through the sheets, and that you are too pretty and mad cool to waste your time on a loser like him. If you don't want to be that harsh, just be honest and tell him you aren't interested in sex with someone you don't know all that well, and that it's a probably a good idea to just move on from each other.