diff --git a/querydsl-apt/src/main/java/com/mysema/query/apt/FreeMarkerSerializer.java b/querydsl-apt/src/main/java/com/mysema/query/apt/FreeMarkerSerializer.java
deleted file mode 100644
index 08f8b9c9a..000000000
--- a/querydsl-apt/src/main/java/com/mysema/query/apt/FreeMarkerSerializer.java
+++ /dev/null
@@ -1,43 +0,0 @@
-/*
- * Copyright (c) 2008 Mysema Ltd.
- * All rights reserved.
- * 
- */
-package com.mysema.query.apt;
-
-import java.io.IOException;
-import java.io.Writer;
-import java.util.Map;
-
-import freemarker.template.Configuration;
-import freemarker.template.DefaultObjectWrapper;
-import freemarker.template.Template;
-import freemarker.template.TemplateException;
-
-/**
- * FreeMarkerSerializer provides.
- * 
- * @author tiwe
- * @version $Id$
- */
-public final class FreeMarkerSerializer {
-    
-    private final Configuration cfg;
-    
-    private final String templateLocation;
-    
-    public FreeMarkerSerializer(String template){
-        if (template == null) throw new IllegalArgumentException("template was null");
-        cfg = new Configuration();
-        cfg.setClassForTemplateLoading(this.getClass(), "/");
-        cfg.setObjectWrapper(new DefaultObjectWrapper());
-        templateLocation = template;
-    }
-    
-    public void serialize(Map<String,Object> model, Writer writer) throws IOException, TemplateException{
-        Template template = cfg.getTemplate(templateLocation);         
-        template.process(model, writer);
-        writer.flush();  
-    }
-
-}
diff --git a/querydsl-apt/src/main/java/com/mysema/query/apt/Serializer.java b/querydsl-apt/src/main/java/com/mysema/query/apt/Serializer.java
new file mode 100644
index 000000000..fcd17ff39
--- /dev/null
+++ b/querydsl-apt/src/main/java/com/mysema/query/apt/Serializer.java
@@ -0,0 +1,50 @@
+package com.mysema.query.apt;
+
+import java.io.IOException;
+import java.io.Writer;
+import java.util.Map;
+
+import freemarker.template.Configuration;
+import freemarker.template.DefaultObjectWrapper;
+import freemarker.template.TemplateException;
+
+/**
+ * Serializer provides
+ *
+ * @author tiwe
+ * @version $Id$
+ */
+public interface Serializer {
+    
+    /**
+     * 
+     * @param model
+     * @param writer
+     * @throws Exception
+     */
+    public void serialize(Map<String,Object> model, Writer writer) throws Exception;
+    
+    public final class FreeMarker implements Serializer{
+        
+        private static final Configuration cfg;
+        
+        static {
+            cfg = new Configuration();
+            cfg.setClassForTemplateLoading(Serializer.class, "/");
+            cfg.setObjectWrapper(new DefaultObjectWrapper());
+        }
+        
+        private final String templateLocation;
+        
+        public FreeMarker(String template){
+            if (template == null) throw new IllegalArgumentException("template was null");            
+            templateLocation = template;
+        }
+        
+        public void serialize(Map<String,Object> model, Writer writer) throws IOException, TemplateException{
+            cfg.getTemplate(templateLocation).process(model, writer);
+            writer.flush();          }
+
+    }
+
+}
diff --git a/querydsl-apt/src/main/java/com/mysema/query/apt/hibernate/HibernateProcessor.java b/querydsl-apt/src/main/java/com/mysema/query/apt/hibernate/HibernateProcessor.java
index 787d018ed..9ced826f6 100644
--- a/querydsl-apt/src/main/java/com/mysema/query/apt/hibernate/HibernateProcessor.java
+++ b/querydsl-apt/src/main/java/com/mysema/query/apt/hibernate/HibernateProcessor.java
@@ -8,18 +8,15 @@ package com.mysema.query.apt.hibernate;
 import static com.sun.mirror.util.DeclarationVisitors.NO_OP;
 import static com.sun.mirror.util.DeclarationVisitors.getDeclarationScanner;
 
-import java.io.File;
-import java.io.FileOutputStream;
-import java.io.IOException;
-import java.io.OutputStreamWriter;
-import java.io.Writer;
+import java.io.*;
+import java.util.Collection;
 import java.util.HashMap;
 import java.util.Map;
 import java.util.TreeSet;
 
 import org.apache.commons.io.FileUtils;
 
-import com.mysema.query.apt.FreeMarkerSerializer;
+import com.mysema.query.apt.Serializer;
 import com.mysema.query.apt.Type;
 import com.sun.mirror.apt.AnnotationProcessor;
 import com.sun.mirror.apt.AnnotationProcessorEnvironment;
@@ -33,20 +30,26 @@ import com.sun.mirror.declaration.Declaration;
  * @version $Id$
  */
 public class HibernateProcessor implements AnnotationProcessor {
+    
+    static final Serializer 
+        DOMAIN_INNER_TMPL = new Serializer.FreeMarker("/domain-as-inner-classes.ftl"),
+        DOMAIN_OUTER_TMPL = new Serializer.FreeMarker("/domain-as-outer-classes.ftl"),
+        DTO_INNER_TMPL = new Serializer.FreeMarker("/dto-as-inner-classes.ftl"),
+        DTO_OUTER_TMPL = new Serializer.FreeMarker("/dto-as-outer-classes.ftl");
 
     private final String destClass, destPackage, dtoClass, dtoPackage;
     
-    private final String include, namePrefix, targetFolder;
-
     private final AnnotationProcessorEnvironment env;
 
+    private final String include, namePrefix, targetFolder;
+    
     public HibernateProcessor(AnnotationProcessorEnvironment env) throws IOException {
         this.env = env;
         this.targetFolder = env.getOptions().get("-s");
-        this.destClass = getString(env.getOptions(), "-AdestClass=", "");
-        this.destPackage = getString(env.getOptions(), "-AdestPackage=", "");
-        this.dtoClass = getString(env.getOptions(), "-AdtoClass=", "");
-        this.dtoPackage = getString(env.getOptions(), "-AdtoPackage=", ""); 
+        this.destClass = getString(env.getOptions(), "-AdestClass=", null);
+        this.destPackage = getString(env.getOptions(), "-AdestPackage=", null);
+        this.dtoClass = getString(env.getOptions(), "-AdtoClass=", null);
+        this.dtoPackage = getString(env.getOptions(), "-AdtoPackage=", null); 
         this.include = getFileContent(env.getOptions(), "-Ainclude=", "");
         this.namePrefix = getString(env.getOptions(), "-AnamePrefix=", "");
     }
@@ -84,8 +87,7 @@ public class HibernateProcessor implements AnnotationProcessor {
 
         // domain types
         visitor1 = new EntityVisitor();
-        a = (AnnotationTypeDeclaration) env
-                .getTypeDeclaration("javax.persistence.Entity");        
+        a = (AnnotationTypeDeclaration) env.getTypeDeclaration("javax.persistence.Entity");        
         for (Declaration typeDecl : env.getDeclarationsAnnotatedWith(a)) {
             typeDecl.accept(getDeclarationScanner(visitor1, NO_OP));
         }
@@ -95,21 +97,13 @@ public class HibernateProcessor implements AnnotationProcessor {
             addSupertypeFields(typeDecl, entityTypes, mappedSupertypes);
         }
         
-        // populate model
-        Map<String, Object> model = new HashMap<String, Object>();
-        model.put("domainTypes", new TreeSet<Type>(entityTypes.values()));
-        model.put("pre", namePrefix);
-        model.put("include", include);
-        model.put("package", destClass.substring(0, destClass.lastIndexOf('.')));
-        model.put("classSimpleName", destClass.substring(destClass.lastIndexOf('.') + 1));
-        
-        // serialize it
-        String path = destClass.replace('.', '/') + ".java";
-        File file = new File(targetFolder, path);
-        if (!file.getParentFile().mkdirs()){
-            System.err.println("Folder " + file.getParent() + " could not be created");
+        if (destClass != null){
+            serializeAsInnerClasses(entityTypes.values());
+        }else if (destPackage != null){
+            serializeAsOuterClasses(entityTypes.values());
+        }else{
+            System.err.print("No class generation for domain types");
         }
-        serialize(file, "/querydsl-hibernate-domain.ftl", model);
         
     }
 
@@ -121,22 +115,15 @@ public class HibernateProcessor implements AnnotationProcessor {
             typeDecl.accept(getDeclarationScanner(visitor2, NO_OP));
         }         
         
-        // populate model
-        Map<String, Object> model = new HashMap<String, Object>();
-        model.put("dtoTypes", visitor2.types);
-        model.put("pre", namePrefix);
-        model.put("package", dtoClass.substring(0, dtoClass.lastIndexOf('.')));
-        model.put("classSimpleName", dtoClass.substring(dtoClass.lastIndexOf('.') + 1));
-        
-        // serialize it
-        String path = dtoClass.replace('.', '/') + ".java";
-        File file = new File(targetFolder, path);
-        if (!file.getParentFile().mkdirs()){
-            System.err.println("Folder " + file.getParent() + " could not be created");
+        if (dtoClass != null){
+            serializeDTOsAsInnerClasses(visitor2.types);                       
+        }else if (dtoPackage != null){
+            serializeDTOsAsOuterClasses(visitor2.types);
+        }else{
+            System.err.print("No class generation for DTO types");
         }
-        serialize(file, "/querydsl-hibernate-dto.ftl", model);
     }
-
+    
     private String getFileContent(Map<String, String> options, String prefix,
             String defaultValue) throws IOException {
         for (Map.Entry<String, String> entry : options.entrySet()) {
@@ -147,7 +134,8 @@ public class HibernateProcessor implements AnnotationProcessor {
         }
         return defaultValue;
     }
-    
+
+
     private String getString(Map<String, String> options, String prefix,
             String defaultValue) {
         for (Map.Entry<String, String> entry : options.entrySet()) {
@@ -163,14 +151,108 @@ public class HibernateProcessor implements AnnotationProcessor {
         if (!"".equals(dtoClass))  createDTOClasses();                 
     }
 
-    private void serialize(File file, String template, Map<String,Object> model){
+    private void serializeAsInnerClasses(Collection<Type> entityTypes) {
+        // populate model
+        Map<String, Object> model = new HashMap<String, Object>();
+        model.put("domainTypes", new TreeSet<Type>(entityTypes));
+        model.put("pre", namePrefix);
+        model.put("include", include);
+        model.put("package", destClass.substring(0, destClass.lastIndexOf('.')));
+        model.put("classSimpleName", destClass.substring(destClass.lastIndexOf('.') + 1));
+        
+        // serialize it
+        String path = destClass.replace('.', '/') + ".java";
+        File file = new File(targetFolder, path);
+        if (!file.getParentFile().exists() && !file.getParentFile().mkdirs()){
+            System.err.println("Folder " + file.getParent() + " could not be created");
+        }
         try {
-            Writer out = new OutputStreamWriter(new FileOutputStream(file));
-            new FreeMarkerSerializer(template).serialize(model, out);
-        } catch (Exception e) {
+            DOMAIN_INNER_TMPL.serialize(model, writerFor(file));
+        } catch (Exception e) {                
+            throw new RuntimeException("Caught exception",e);
+        }
+    }
+    
+
+    private void serializeAsOuterClasses(Collection<Type> entityTypes) {
+        // populate model
+        Map<String, Object> model = new HashMap<String, Object>();
+        model.put("pre", namePrefix);
+        model.put("include", include);
+        model.put("package", destPackage);
+        
+        for (Type type : entityTypes){
+            model.put("type", type);
+            model.put("classSimpleName", type.getSimpleName());
+            
+            // serialize it
+            String path = destPackage.replace('.', '/') + "/" + namePrefix + type.getSimpleName() + ".java";
+            File file = new File(targetFolder, path);
+            if (!file.getParentFile().exists() && !file.getParentFile().mkdirs()){
+                System.err.println("Folder " + file.getParent() + " could not be created");
+            }
+            try {
+                DOMAIN_OUTER_TMPL.serialize(model, writerFor(file));
+            } catch (Exception e) {                
+                throw new RuntimeException("Caught exception",e);
+            }
+        }        
+    }
+    
+    private void serializeDTOsAsInnerClasses(Collection<Type> types) {
+        // populate model
+        Map<String, Object> model = new HashMap<String, Object>();
+        model.put("dtoTypes", types);
+        model.put("pre", namePrefix);
+        model.put("package", dtoClass.substring(0, dtoClass.lastIndexOf('.')));
+        model.put("classSimpleName", dtoClass.substring(dtoClass.lastIndexOf('.') + 1));
+        
+        // serialize it
+        String path = dtoClass.replace('.', '/') + ".java";
+        File file = new File(targetFolder, path);
+        if (!file.getParentFile().mkdirs()){
+            System.err.println("Folder " + file.getParent() + " could not be created");
+        }
+        try {
+            DTO_INNER_TMPL.serialize(model, writerFor(file));
+        } catch (Exception e) {                
+            throw new RuntimeException("Caught exception",e);
+        }        
+    }
+
+    private void serializeDTOsAsOuterClasses(Collection<Type> types){
+        // populate model
+           Map<String, Object> model = new HashMap<String, Object>();        
+           model.put("pre", namePrefix);
+           model.put("include", include);
+           model.put("package", dtoPackage);
+           
+           for (Type type : types){
+               model.put("type", type);
+               model.put("classSimpleName", type.getSimpleName());
+               
+               // serialize it
+               String path = dtoPackage.replace('.', '/') + "/" + namePrefix + type.getSimpleName() + ".java";
+               File file = new File(targetFolder, path);
+               if (!file.getParentFile().exists() && !file.getParentFile().mkdirs()){
+                   System.err.println("Folder " + file.getParent() + " could not be created");
+               }
+               try {
+                   DTO_OUTER_TMPL.serialize(model, writerFor(file));
+               } catch (Exception e) {                
+                   throw new RuntimeException("Caught exception",e);
+               }   
+           }
+          
+       }
+
+    private Writer writerFor(File file){
+        try {
+            return new OutputStreamWriter(new FileOutputStream(file));
+        } catch (FileNotFoundException e) {
             String error = "Caught " + e.getClass().getName();
             throw new RuntimeException(error, e);
         }
     }
-    
+       
 }
\ No newline at end of file
diff --git a/querydsl-apt/src/main/resources/domain-as-inner-classes.ftl b/querydsl-apt/src/main/resources/domain-as-inner-classes.ftl
new file mode 100644
index 000000000..85b880520
--- /dev/null
+++ b/querydsl-apt/src/main/resources/domain-as-inner-classes.ftl
@@ -0,0 +1,20 @@
+<#import "/macros.ftl" as cl>
+package ${package};
+
+import com.mysema.query.grammar.types.*;
+import static com.mysema.query.grammar.types.PathMetadata.*;
+
+/**
+ * ${classSimpleName} provides types for use in Query DSL constructs
+ *
+ */
+public class ${classSimpleName} {
+${include}             
+<#list domainTypes as type>               
+    public static final class ${pre}${type.simpleName} extends Path.Entity<${type.name}>{
+		<@cl.classContent decl=type/>		
+    }
+        
+</#list>
+    
+}
diff --git a/querydsl-apt/src/main/resources/domain-as-outer-classes.ftl b/querydsl-apt/src/main/resources/domain-as-outer-classes.ftl
new file mode 100644
index 000000000..9dca5e0dc
--- /dev/null
+++ b/querydsl-apt/src/main/resources/domain-as-outer-classes.ftl
@@ -0,0 +1,13 @@
+<#import "/macros.ftl" as cl>
+package ${package};
+
+import com.mysema.query.grammar.types.*;
+import static com.mysema.query.grammar.types.PathMetadata.*;
+
+/**
+ * ${classSimpleName} provides types for use in Query DSL constructs
+ *
+ */
+public class ${pre}${classSimpleName} extends Path.Entity<${type.name}>{
+<@cl.classContent decl=type/>
+}
diff --git a/querydsl-apt/src/main/resources/querydsl-hibernate-dto.ftl b/querydsl-apt/src/main/resources/dto-as-inner-classes.ftl
similarity index 100%
rename from querydsl-apt/src/main/resources/querydsl-hibernate-dto.ftl
rename to querydsl-apt/src/main/resources/dto-as-inner-classes.ftl
diff --git a/querydsl-apt/src/main/resources/dto-as-outer-classes.ftl b/querydsl-apt/src/main/resources/dto-as-outer-classes.ftl
new file mode 100644
index 000000000..e08a6d282
--- /dev/null
+++ b/querydsl-apt/src/main/resources/dto-as-outer-classes.ftl
@@ -0,0 +1,17 @@
+<#import "/macros.ftl" as cl>
+package ${package};
+
+import static com.mysema.query.grammar.types.HqlTypes.*;
+import com.mysema.query.grammar.types.*;
+
+/**
+ * ${classSimpleName} provides types for use in Query DSL constructs
+ *
+ */
+public class ${pre}${classSimpleName} extends Constructor<${type.name}>{
+    <#list type.constructors as co>    
+        public ${pre}${type.simpleName}(<#list co.parameters as pa>Expr<${pa.typeName}> ${pa.name}<#if pa_has_next>,</#if></#list>){
+            super(${type.name}.class<#list co.parameters as pa>,${pa.name}</#list>);
+        }
+    </#list>   
+}
diff --git a/querydsl-apt/src/main/resources/querydsl-hibernate-domain.ftl b/querydsl-apt/src/main/resources/macros.ftl
similarity index 82%
rename from querydsl-apt/src/main/resources/querydsl-hibernate-domain.ftl
rename to querydsl-apt/src/main/resources/macros.ftl
index c5f3ed8f4..b85cbf480 100644
--- a/querydsl-apt/src/main/resources/querydsl-hibernate-domain.ftl
+++ b/querydsl-apt/src/main/resources/macros.ftl
@@ -1,26 +1,13 @@
-<#assign reserved = ["isnull", "isnotnull", "getType", "getMetadata", "toString", "hashCode", "getClass", "notify", "notifyAll", "wait"]>
-package ${package};
-
-import com.mysema.query.grammar.types.*;
-import static com.mysema.query.grammar.types.PathMetadata.*;
-
-/**
- * ${classSimpleName} provides types for use in Query DSL constructs
- *
- */
-public class ${classSimpleName} {
-${include}             
-<#list domainTypes as decl>               
-    public static final class ${pre}${decl.simpleName} extends Path.Entity<${decl.name}>{
-	<#list decl.stringFields as field>
+<#macro classContent decl>
+  <#assign reserved = ["isnull", "isnotnull", "getType", "getMetadata", "toString", "hashCode", "getClass", "notify", "notifyAll", "wait"]>
+  <#list decl.stringFields as field>
     	public final Path.String ${field.name} = _string("${field.name}");
     </#list>    
     <#list decl.booleanFields as field>
     	public final Path.Boolean ${field.name} = _boolean("${field.name}");
     </#list>
-<#-- 
-	simple fields
---> 
+    
+  <#-- simple fields --> 
     <#list decl.simpleFields as field>
 		public final Path.Comparable<${field.typeName}> ${field.name} = _comparable("${field.name}",${field.typeName}.class);
     	</#list>
@@ -45,9 +32,8 @@ ${include}
     		return new Path.Simple<${field.typeName}>(${field.typeName}.class,forListAccess(${field.name},index));
     	}
     </#list>             
-<#-- 
-	entity fields
--->           
+    
+  <#-- entity fields -->           
     <#list decl.entityMaps as field>
     	public final Path.EntityMap<${field.keyTypeName},${field.typeName}> ${field.name} = _entitymap("${field.name}",${field.keyTypeName}.class,${field.typeName}.class);
     	public ${pre}${field.simpleTypeName} ${field.name}(${field.keyTypeName} key) {
@@ -78,9 +64,8 @@ ${include}
         }
     	</#if>
 	</#list>
-<#-- 
-	constructors
--->  	     
+	
+  <#-- constructors -->  	     
         public ${pre}${decl.simpleName}(java.lang.String path) {
         	super(${decl.name}.class, path);
         <#list decl.entityFields as field>
@@ -92,8 +77,4 @@ ${include}
         public ${pre}${decl.simpleName}(PathMetadata<?> metadata) {
         	super(${decl.name}.class, metadata);
         }
-    }
-        
-</#list>
-    
-}
+</#macro>        
\ No newline at end of file
diff --git a/querydsl-apt/src/test/java/com/mysema/query/apt/hibernate/HibernateProcessorTest.java b/querydsl-apt/src/test/java/com/mysema/query/apt/hibernate/HibernateProcessorTest.java
index 14c672e1d..1f4c7d45b 100644
--- a/querydsl-apt/src/test/java/com/mysema/query/apt/hibernate/HibernateProcessorTest.java
+++ b/querydsl-apt/src/test/java/com/mysema/query/apt/hibernate/HibernateProcessorTest.java
@@ -5,17 +5,18 @@
  */
 package com.mysema.query.apt.hibernate;
 
-import java.io.IOException;
 import java.io.StringWriter;
+import java.io.Writer;
 import java.util.Collections;
 import java.util.HashMap;
 import java.util.Map;
 
 import org.junit.Test;
 
-import com.mysema.query.apt.*;
-
-import freemarker.template.TemplateException;
+import com.mysema.query.apt.Constructor;
+import com.mysema.query.apt.Field;
+import com.mysema.query.apt.Parameter;
+import com.mysema.query.apt.Type;
 
 /**
  * HibernateProcessorTest provides.
@@ -24,36 +25,54 @@ import freemarker.template.TemplateException;
  * @version $Id$
  */
 public class HibernateProcessorTest  {
+    
+    private Type type;
+    
+    private Writer writer = new StringWriter();
+    
+    private Map<String, Object> model = new HashMap<String, Object>();
         
+    public HibernateProcessorTest(){
+        type = new Type("com.mysema.query.DomainSuperClass","com.mysema.query.DomainClass","DomainClass");
+        Field field = new Field("field",null,"java.lang.String","java.lang.String",Field.Type.STRING);
+        type.addField(field);
+        Parameter param = new Parameter("name","java.lang.String");
+        type.addConstructor( new Constructor(Collections.singleton(param)));
+    }
+    
     @Test
-    public void testDomainTypes() throws IOException, TemplateException{        
-        Map<String, Object> model = new HashMap<String, Object>();
-        model.put("domainTypes", Collections.singleton(createTypeDecl()));
+    public void testDomainTypesAsInnerClass() throws Exception{        
+        model.put("domainTypes", Collections.singleton(type));
         model.put("pre", "");
         model.put("include", "");
         model.put("package",  "com.mysema.query");
         model.put("classSimpleName", "Test");
-        StringWriter writer = new StringWriter();
-        new FreeMarkerSerializer("/querydsl-hibernate-domain.ftl").serialize(model, writer);
+        
+        // as inner classes        
+        HibernateProcessor.DOMAIN_INNER_TMPL.serialize(model, writer);
+    }
+    
+    @Test
+    public void testDomainTypesAsOuterClasses() throws Exception{
+        model.put("type", type);
+        model.put("pre", "");
+        model.put("include", "");
+        model.put("package",  "com.mysema.query");
+        model.put("classSimpleName", "Test");
+        
+        // as outer classes        
+        HibernateProcessor.DOMAIN_OUTER_TMPL.serialize(model, writer);
     }
 
     @Test
-    public void testDTOTypes() throws IOException, TemplateException{
-        Map<String, Object> model = new HashMap<String, Object>();
-        model.put("dtoTypes", Collections.singleton(createTypeDecl()));
+    public void testDTOTypes() throws Exception{
+        model.put("dtoTypes", Collections.singleton(type));
         model.put("pre", "");
         model.put("package", "com.mysema.query");
         model.put("classSimpleName", "Test");
-        StringWriter writer = new StringWriter();
-        new FreeMarkerSerializer("/querydsl-hibernate-dto.ftl").serialize(model, writer);
-    }
-    
-    private Type createTypeDecl() {
-        Type typeDecl = new Type("com.mysema.query.DomainSuperClass","com.mysema.query.DomainClass","DomainClass");
-        Field field = new Field("field",null,"java.lang.String","java.lang.String",Field.Type.STRING);
-        typeDecl.addField(field);
-        Parameter param = new Parameter("name","java.lang.String");
-        typeDecl.addConstructor( new Constructor(Collections.singleton(param)));
-        return typeDecl;
+        
+        // as inner classes        
+        HibernateProcessor.DTO_INNER_TMPL.serialize(model, writer);
     }
+        
 }