You don't have the jars on your class path.. (And please use [ code][/code ] tags!).
Code:
set CLASSPATH=lib\activation.jar;lib\aopalliance-1.0.jar;lib\commons-dbcp.jar;lib\commons-lang-2.4.jar;lib\commons-logging.jar;lib\commons-pool.jar;lib\db2jcc.jar;lib\db2jcc4.jar;lib\db2jcc _license_cisuz.jar;lib\ibatis-2.3.4.726.jar;lib\jaxb-api.jar;lib\jaxb-impl.jar;lib\jaxb-xjc.jar;lib\jettison-1.3.jarlib\log4j-1.2.16.jar;lib\ojdbc14.jar;lib\org.springframework .aop-3.0.3.RELEASE.jar;lib\org.springframework.asm-3.0.3.RELEASE.jar;lib\org.springframework.beans-3.0.3.RELEASE.jar;lib\org.springframework.context-3.0.3.RELEASE.jar;lib\org.springframework.context. support-3.0.3.RELEASE.jar;lib\org.springframework.core-3.0.3.RELEASE.jar;lib\org.springframework.expressi on-3.0.3.RELEASE.jar;lib\org.springframework.jdbc-3.0.3.RELEASE.jar;lib\org.springframework.orm-3.0.3.RELEASE.jar;lib\org.springframework.transact ion-3.0.3.RELEASE.jar;lib\spring-batch-core-2.1.0.RELEASE;lib\spring-batch-infrastructure-2.1.0.RELEASE;lib\spring-batch-test-2.1.0.RELEASE;lib\stax-api-1.0.1;lib\xstream-1.3;VendorPortalBatch.jar
The part in blue doesn't point to a jar file but to well something that probably isn't a jar and neither a dir that contains classes. There are more of those 'paths' on your class path which point to well nowhere...