If you select the Create separate folders for header and source files check box, in the source file folder that you specify, the transformation generates the files in the same hierarchy as the source UML model. The transformation does not preserve the source model hierarchy for header files. For example, assume a UML model contains a package called Package1, which contains a class called Class1. If you specify HeaderFolder and SourceFolder as the folder names for the generated header and source files, the transformation generates a file called Class1.h in the HeaderFolder folder structure of the target project, and a file called Class1.cpp in the SourceFolder/Package1 folder structure of the target project.