Thanks everyone! I guess there was a delay with my SMTP server just now. 
It works now.

My last question is..

Do I need to install sendmail to have exim4 work with PHP?

I was wondering if I do not have sendmail installed, what should be in 
my PHP.ini file?

sendmail_path = /usr/sbin/sendmail -t -i

This is what is in my PHP.ini file at the moment.

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