I'd terminate him too. Obviously there's some countertransference going on and though he's trying to deal with it, it doesn't sound like he's managing. The comment was too much and him checking you out? I'd be out of there in a second. So not how a T should act...
Here a T must be supervised for 10 yrs. to become a certified T and then it's up to him whether he pays for a supervisor or not. Needless to say most Ts won't