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See this question on the form: http://www.eclipse.org/forums/index.php/mv/msg/263238/760792/ When having an external annotation it makes sense to annotate the refered to class as being transient to prevent a table from being created in the database. This results however in a NPE (see the forum post), as the ereference is set to be transient and no one-to-many annotation is generated.
In latest build: an eclass can be annotated with @External, in that case no table will be created for the EClass and all ereferences to it are assumed to be external (they will automatically get an External annotation): http://wiki.eclipse.org/Teneo/Hibernate/ModelRelational/Association_Mapping#Storing_external_references_.28to_non-persisted_objects.29.2C_customizing_persisting_references