Livy Doesn't work with Spark on Mesos in cluster mode

Client mode - it works.
But it doesnt work with cluster mode:

Added to livy.conf:
livy.spark.master=mesos://node1:5050
livy.spark.deployMode=cluster

Added to hue.ini:
[spark]
livy_server_host=node1
livy_server_port=8998

Livy logs:
17/06/16 21:00:26 INFO StateStore$: Using BlackholeStateStore for recovery.
17/06/16 21:00:26 INFO BatchSessionManager: Recovered 0 batch sessions. Next session id: 0
17/06/16 21:00:26 INFO InteractiveSessionManager: Recovered 0 interactive sessions. Next session id: 0
17/06/16 21:00:26 INFO InteractiveSessionManager: Heartbeat watchdog thread started.
17/06/16 21:00:26 INFO WebServer: Starting server on http://node1:8998
17/06/16 22:04:04 INFO LivyServer: Shutting down Livy server.
17/06/16 22:04:07 INFO StateStore$: Using BlackholeStateStore for recovery.
17/06/16 22:04:07 INFO BatchSessionManager: Recovered 0 batch sessions. Next session id: 0
17/06/16 22:04:07 INFO InteractiveSessionManager: Recovered 0 interactive sessions. Next session id: 0
17/06/16 22:04:07 INFO InteractiveSessionManager: Heartbeat watchdog thread started.
17/06/16 22:04:07 INFO WebServer: Starting server on http://node1:8998
17/06/16 22:05:07 INFO InteractiveSession$: Creating LivyClient for sessionId: 0
17/06/16 22:05:07 WARN RSCConf: Your hostname, node1, resolves to a loopback address, but we couldn't find any external IP addre$
17/06/16 22:05:07 WARN RSCConf: Set livy.rsc.rpc.server.address if you need to bind to another address. (edited)

[5:01]
7/06/16 22:05:10 WARN ContextLauncher: Child process exited with code 1.
17/06/16 22:05:10 ERROR RSCClient: Failed to connect to context.
java.io.IOException: Child process exited with code 1.
at com.cloudera.livy.rsc.ContextLauncher$ChildProcess$1.run(ContextLauncher.java:416)
at com.cloudera.livy.rsc.ContextLauncher$ChildProcess$2.run(ContextLauncher.java:490)
at java.lang.Thread.run(Thread.java:748)
17/06/16 22:05:10 INFO RSCClient: Failing pending job 8a53d717-773c-434e-807f-3ceb46138a66 due to shutdown.
17/06/16 22:05:10 INFO InteractiveSession: Stopping InteractiveSession 0...
17/06/16 22:05:10 INFO InteractiveSession: Stopped InteractiveSession 0.
17/06/16 22:05:10 WARN InteractiveSession: (Fail to get rsc uri,java.util.concurrent.ExecutionException: java.io.IOException: Ch$
17/06/16 22:05:12 INFO InteractiveSession: Stopping InteractiveSession 0...
17/06/16 22:05:12 INFO InteractiveSession: Stopped InteractiveSession 0.
17/06/16 22:12:45 WARN HttpParser: Illegal character 0x16 in state=START for buffer HeapByteBuffer@5bf799a9[p=1,l=171,c=16384,r=$
17/06/16 22:12:45 WARN HttpParser: badMessage: 400 Illegal character 0x16 for HttpChannelOverHttp@10e07e9e{r=0,c=false,a=IDLE,ur$
17/06/16 22:58:15 WARN HttpParser: Illegal character 0x16 in state=START for buffer HeapByteBuffer@5bf799a9[p=1,l=171,c=16384,r=$
17/06/16 22:58:15 WARN HttpParser: badMessage: 400 Illegal character 0x16 for HttpChannelOverHttp@2ef0a110{r=0,c=false,a=ID