This was working:
nested exception is java.lang.NoClassDefFoundError:
I think you should use
org.springframework.orm.hibernate4.LocalSessionFactoryBean instead of
NOTE: This variant of LocalSessionFactoryBean requires Hibernate 4.0 or higher. It is similar in role to the same-named class in the orm.hibernate3 package. However, in practice, it is closer to AnnotationSessionFactoryBean since its core purpose is to bootstrap a SessionFactory from annotation scanning.