Google App Engine - newbie problem

Dear Vaadin experts,

I’m new to Vaadin and wanted to try it out with basic applications like Hello world on local Tomcat server and with GAE since this is the only free Java hosting I know of.
I started Vaadin project on local Tomcat server without any problems following Book of Vaadin instructions.

However, I have problems with GAE. I follow this instructions:
https://vaadin.com/wiki/-/wiki/Main/Google%20AppEngine%20HOWTO

I create a default project with default code in it. And everything goes well and I’m able to deploy the application to GAE. But - it doesn’t run on GAE for some reason.
I get 500 Server Error.

Below are screenshots of the parameters I specify during Vaadin for GAE project creation. May be there are some problems with Configuration or Vaadin version I selected?
There is, actually, one problem during deployment. See the last screenshot. GAE SDK setting casue error message during very first deployment of the project always. To fix that I go to Use GAE settings in step 2 and repeat this step once again. After that error message doesn’t show anymore and project could be succesfully deployed to GAE. But when I try to run it, it reports 500 Server Error.

I have GAE server logs that has: “javax.servlet.ServletException: Failed to load application class: com.example.helloworld.HelloworldApplication”. Any ideas what could go wrong here? I would appreciate any suggestions.
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Additional note. If I create pure GAE project in Eclipse without Vaadin it deploys and works fine on GAE. When I do a Vaadin project - it deploys but doesn’t work on GAE. Any ideas.