Exhibit 10.18


THIS AGREEMENT is made of the 1st day of October 2003

BETWEEN:

Jason McDiarmid, businessman, of 1839 LaRonde Drive, Surrey, B. C.
("McDiarmid");

AND

Essential Innovations Technology Corp. a Nevada corporation with an office at
114 West Magnolia Street, Suite 400-142, Bellingham, WA 98225 ("EITC")

WHEREAS:

EITC is engaged in the business of developing certain proprietary geo thermal
products.

McDiarmid is the President and Chief Executive Officer of EITC

NOW IT IS HEREBY AGREED as follows:

1.       Interpretation

         1.1      In this Agreement:

                  i)       "Agreement" means this document and any and all
                           Schedules to this Agreement, as amended, modified or
                           supplemented from time to time in accordance with
                           these provisions;
2. Loan:

         2.1      McDiarmid agrees to lend EITC US $33,300.00 with terms and
                  conditions as per Schedule "A"

         2.2      EITC agrees to repay the loan in full, together with interest
                  when demanded by McDiarmid

3. Options:

         3.1      In consideration of McDiarmid making the loan of US
                  $33,300.00, EITC agrees to grant McDiarmid 50,000 options to
                  acquire common shares of EITC, exercisable until January 1,
                  2011

                  a) 25,000 exercisable at US $0.25 per share

                  b) 25,000 exercisable at US $0.50 per share

4.       Notice

         4.1      All notices required or permitted hereunder shall be in
                  writing and shall be transmitted by hand or by post to the
                  parties addressed to the addresses given at the head of this
                  Agreement, or such other address as the parties may designate
                  in writing.

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5.       Miscellaneous

         5.1      If any provision of this Agreement shall be held to be
                  invalid, illegal or unenforceable, the validity, legality and
                  enforceability of the remaining provisions of this Agreement
                  shall not in any way be affected or impaired thereby.

         5.2      The clause headings in this Agreement are inserted for
                  convenience only and should be ignored in construing this
                  Agreement.

         5.3.     No change in, or addition to, the terms of this Agreement
                  shall be valid unless in writing and signed by the parties
                  hereto.

         5.4      This Agreement shall be governed by and construed in
                  accordance with the laws of the State of Nevada.

The Recitals and Schedules hereto form part of this Agreement.

IN WITNESS WHEREOF the parties hereto have entered into this Agreement the day
and year first above written.


/s/ Jason McDiarmid
------------------------
Jason McDiarmid


For and on behalf of
Essential Innovations Technology Corp.

/s/ Kenneth Telford
------------------------
Kenneth Telford, CFO & Secretary

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                                   SCHEDULE A
                   LOAN OF US $33,300.00 from Jason McDiarmid
                    To Essential Innovations Technology Corp


Date of loan:     October 1, 2003

Term:             Due on Demand, demand will not be made for repayment prior to
                  March 31, 2004

Interest:         flat interest of 12%, no regardless when the loan is repaid

Security:         Unsecured

Initials:         JM       /s/ JM
                  EIC      /s/ SW
                  EITC     /s/ KT

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