[exim] Exim SMTP Auth Issue

Hello,

I am using two exim instance one for SMTP sending emails and one for
POP/IMAP to receive emails.
I tried to configure SMTP authentication via creating
/etc/exim/passwd.client file which contains all my domain users with
password.

-rw-r--r-- 1 root root /etc/exim/passwd.client

$ cat /etc/exim/passwd.client (manually inserted those users,pass)
myuser1:secret1
myuser2:secret2
myuser3:secret3

exim.conf related snip:
never_user = root

plain:
driver = plaintext
public_name = PLAIN
client_send = "${extract{auth_name}\
{${lookup{$sender_address}lsearch\
{/etc/exim/passwd.client}{$value}fail}}}\
${extract{auth_pass}\
{${lookup{$sender_address}lsearch\
{/etc/exim/passwd.client}{$value}fail}}}"

login:
driver = plaintext
public_name = LOGIN
client_send = "${extract{auth_name}\
{${lookup{$sender_address}lsearch\
{/etc/exim/passwd.client}{$value}fail}}}\
: ${extract{auth_pass}\
{${lookup{$sender_address}lsearch\
{/etc/exim/passwd.client}{$value}fail}}}"

cram_md5:
driver = cram_md5
public_name = CRAM-MD5
client_name =
"${extract{auth_name}{${lookup{$sender_address}wildlsearch{/etc/exim/passwd.client}{$value}fail}}}"
client_secret =
"${extract{auth_pass}{${lookup{$sender_address}wildlsearch{/etc/exim/passwd.client}{$value}fail}}}"

Email Client OutLook related snip:

Account Type >> POP3
Tools >> Options >> Email Accounts >> user@??? >> Incoming Mail
server >> IMAP/POP3 server IP
Tools >> Options >> Email Accounts >> user@??? >> Outgoing Mail
server >> SMTP server IP
Tools >> Options >> Email Accounts >> user@??? >> Outgoing Mail
server >> More Settings >> Outgoing Server

(SELECTED) My outgoing server (SMTP) requires authentication.
(SELECTED) Logon using username: myuser1 password: secret1

But as soon as i send email it stuck in outlook outbox never reaches to
SMTP server. As soon as i uncheck SMTP requires authentication mails
delievers properly.
Please let me know how to configure SMTP authentication. I need this
because to make is secure and no one can abuse SMTP server.

Exim version i am using is 4.6 on CentOS 5.

Thank you.