diff --git a/dao/pom.xml b/dao/pom.xml
new file mode 100644
index 000000000..40aa93005
--- /dev/null
+++ b/dao/pom.xml
@@ -0,0 +1,26 @@
+<?xml version="1.0"?>
+<project xsi:schemaLocation="http://maven.apache.org/POM/4.0.0 http://maven.apache.org/xsd/maven-4.0.0.xsd" xmlns="http://maven.apache.org/POM/4.0.0"
+    xmlns:xsi="http://www.w3.org/2001/XMLSchema-instance">
+  <modelVersion>4.0.0</modelVersion>
+  <parent>
+    <groupId>com.iluwatar</groupId>
+    <artifactId>java-design-patterns</artifactId>
+    <version>1.0-SNAPSHOT</version>
+  </parent>
+  <artifactId>dao</artifactId>
+  <dependencies>
+	<dependency>
+	    <groupId>org.hibernate</groupId>
+	    <artifactId>hibernate-core</artifactId>
+	</dependency>
+	<dependency>
+		<groupId>com.h2database</groupId>
+		<artifactId>h2</artifactId>
+	</dependency>  
+    <dependency>
+      <groupId>junit</groupId>
+      <artifactId>junit</artifactId>
+      <scope>test</scope>
+    </dependency>
+  </dependencies>
+</project>
diff --git a/dao/src/main/java/com/iluwatar/App.java b/dao/src/main/java/com/iluwatar/App.java
new file mode 100644
index 000000000..3758e41bf
--- /dev/null
+++ b/dao/src/main/java/com/iluwatar/App.java
@@ -0,0 +1,40 @@
+package com.iluwatar;
+
+import java.util.List;
+
+import org.hibernate.Query;
+import org.hibernate.Session;
+import org.hibernate.SessionFactory;
+import org.hibernate.cfg.Configuration;
+
+public class App 
+{
+    public static void main( String[] args ) {
+    	
+    	SessionFactory sessionFactory = new Configuration()
+    	  .addAnnotatedClass(Wizard.class)
+    	  .addAnnotatedClass(Spellbook.class)
+    	  .addAnnotatedClass(Spell.class)
+    	  .setProperty("hibernate.dialect", "org.hibernate.dialect.H2Dialect")
+    	  .setProperty("hibernate.connection.url", "jdbc:h2:mem:test;DB_CLOSE_DELAY=-1")
+    	  .setProperty("hibernate.current_session_context_class", "thread")
+    	  .setProperty("hibernate.show_sql", "true")
+    	  .setProperty("hibernate.hbm2ddl.auto", "create")
+    	  .buildSessionFactory();
+    	  
+    	  Session session = sessionFactory.getCurrentSession();
+    	  session.beginTransaction();
+    	  Wizard wizard = new Wizard();
+    	  wizard.setFirstName("Jugga");
+    	  Spellbook spellbook = new Spellbook();
+    	  Spell spell = new Spell();
+    	  spellbook.getSpells().add(spell);
+    	  wizard.getSpellbooks().add(spellbook);
+    	  session.persist(wizard);
+    	  Query query = session.createQuery("from Wizard");
+    	  List<?> list = query.list();
+    	  Wizard p1 = (Wizard) list.get(0);
+    	  System.out.println(String.format("id=%d firstName=%s", p1.getId(), p1.getFirstName()));
+    	  session.getTransaction().commit();    	
+    }
+}
diff --git a/dao/src/main/java/com/iluwatar/BaseEntity.java b/dao/src/main/java/com/iluwatar/BaseEntity.java
new file mode 100644
index 000000000..8a6f626b8
--- /dev/null
+++ b/dao/src/main/java/com/iluwatar/BaseEntity.java
@@ -0,0 +1,27 @@
+package com.iluwatar;
+
+import javax.persistence.Column;
+import javax.persistence.Entity;
+import javax.persistence.GeneratedValue;
+import javax.persistence.Id;
+import javax.persistence.Version;
+
+@Entity
+public class BaseEntity {
+
+	@Id
+	@GeneratedValue
+	@Column(name = "ID")
+	private Long id;
+
+	public Long getId() {
+		return id;
+	}
+
+	public void setId(Long id) {
+		this.id = id;
+	}
+	
+	@Version
+	private Long version;
+}
diff --git a/dao/src/main/java/com/iluwatar/DaoBase.java b/dao/src/main/java/com/iluwatar/DaoBase.java
new file mode 100644
index 000000000..fe8d84dcd
--- /dev/null
+++ b/dao/src/main/java/com/iluwatar/DaoBase.java
@@ -0,0 +1,24 @@
+package com.iluwatar;
+
+public abstract class DaoBase<E extends BaseEntity> {
+
+	E find(Long id) {
+		
+	}
+	
+	void persist(E e) {
+		
+	}
+	
+	E merge(E e) {
+		
+	}
+	
+	void remove(E e) {
+		
+	}
+	
+	List<E> findAll() {
+		
+	}
+}
diff --git a/dao/src/main/java/com/iluwatar/Spell.java b/dao/src/main/java/com/iluwatar/Spell.java
new file mode 100644
index 000000000..01a78f9da
--- /dev/null
+++ b/dao/src/main/java/com/iluwatar/Spell.java
@@ -0,0 +1,25 @@
+package com.iluwatar;
+
+import javax.persistence.Entity;
+import javax.persistence.JoinColumn;
+import javax.persistence.ManyToOne;
+import javax.persistence.Table;
+
+@Entity
+@Table(name="SPELL")
+public class Spell extends BaseEntity {
+	
+	private String name;
+
+	@ManyToOne
+	@JoinColumn(name="SPELLBOOK_ID_FK", referencedColumnName="ID")
+	private Spellbook spellbook;
+	
+	public String getName() {
+		return name;
+	}
+
+	public void setName(String name) {
+		this.name = name;
+	}
+}
diff --git a/dao/src/main/java/com/iluwatar/Spellbook.java b/dao/src/main/java/com/iluwatar/Spellbook.java
new file mode 100644
index 000000000..d10bc9c49
--- /dev/null
+++ b/dao/src/main/java/com/iluwatar/Spellbook.java
@@ -0,0 +1,53 @@
+package com.iluwatar;
+
+import java.util.HashSet;
+import java.util.Set;
+
+import javax.persistence.CascadeType;
+import javax.persistence.Entity;
+import javax.persistence.JoinColumn;
+import javax.persistence.ManyToOne;
+import javax.persistence.OneToMany;
+import javax.persistence.Table;
+
+@Entity
+@Table(name="SPELLBOOK")
+public class Spellbook extends BaseEntity {
+	
+	public Spellbook() {
+		spells = new HashSet<Spell>();
+	}
+
+	private String name;
+
+	@ManyToOne
+	@JoinColumn(name="WIZARD_ID_FK", referencedColumnName="ID")
+	private Wizard wizard;
+
+	@OneToMany(mappedBy = "spellbook", orphanRemoval = true, cascade = CascadeType.ALL)
+	private Set<Spell> spells;
+	
+	public String getName() {
+		return name;
+	}
+
+	public void setName(String name) {
+		this.name = name;
+	}
+
+	public Wizard getWizard() {
+		return wizard;
+	}
+
+	public void setWizard(Wizard wizard) {
+		this.wizard = wizard;
+	}
+
+	public Set<Spell> getSpells() {
+		return spells;
+	}
+
+	public void setSpells(Set<Spell> spells) {
+		this.spells = spells;
+	}
+}
diff --git a/dao/src/main/java/com/iluwatar/Wizard.java b/dao/src/main/java/com/iluwatar/Wizard.java
new file mode 100644
index 000000000..678d7d39e
--- /dev/null
+++ b/dao/src/main/java/com/iluwatar/Wizard.java
@@ -0,0 +1,39 @@
+package com.iluwatar;
+
+import java.util.HashSet;
+import java.util.Set;
+
+import javax.persistence.CascadeType;
+import javax.persistence.Entity;
+import javax.persistence.OneToMany;
+import javax.persistence.Table;
+
+@Entity
+@Table(name="WIZARD")
+public class Wizard extends BaseEntity {
+	
+	public Wizard() {
+		spellbooks = new HashSet<Spellbook>();
+	}
+	
+	private String firstName;
+
+	@OneToMany(mappedBy = "wizard", orphanRemoval = true, cascade = CascadeType.ALL)
+	private Set<Spellbook> spellbooks;
+	
+	public String getFirstName() {
+		return firstName;
+	}
+
+	public void setFirstName(String firstName) {
+		this.firstName = firstName;
+	}
+
+	public Set<Spellbook> getSpellbooks() {
+		return spellbooks;
+	}
+
+	public void setSpellbooks(Set<Spellbook> spellbooks) {
+		this.spellbooks = spellbooks;
+	}	
+}
diff --git a/dao/src/test/java/com/iluwatar/AppTest.java b/dao/src/test/java/com/iluwatar/AppTest.java
new file mode 100644
index 000000000..a625cec70
--- /dev/null
+++ b/dao/src/test/java/com/iluwatar/AppTest.java
@@ -0,0 +1,4 @@
+package com.iluwatar;
+
+public class AppTest {
+}
diff --git a/pom.xml b/pom.xml
index 33b34296f..4816f46d2 100644
--- a/pom.xml
+++ b/pom.xml
@@ -9,6 +9,9 @@
 
 	<properties>
 		<project.build.sourceEncoding>UTF-8</project.build.sourceEncoding>
+		<hibernate.version>5.0.0.Beta1</hibernate.version>
+		<h2.version>1.4.187</h2.version>
+		<junit.version>4.12</junit.version>
 	</properties>
 	<modules>
 		<module>abstract-factory</module>
@@ -46,14 +49,25 @@
 		<module>intercepting-filter</module>
 		<module>poison-pill</module>
     <module>lazy-loading</module>
+    <module>dao</module>
   </modules>
 
 	<dependencyManagement>
 		<dependencies>
+			<dependency>
+			    <groupId>org.hibernate</groupId>
+			    <artifactId>hibernate-core</artifactId>
+			    <version>${hibernate.version}</version>
+			</dependency>
+			<dependency>
+				<groupId>com.h2database</groupId>
+				<artifactId>h2</artifactId>
+				<version>${h2.version}</version>
+			</dependency>  
 			<dependency>
 				<groupId>junit</groupId>
 				<artifactId>junit</artifactId>
-				<version>4.11</version>
+				<version>${junit.version}</version>
 				<scope>test</scope>
 			</dependency>
 		</dependencies>