The rule you should apply is $\
eg (\forall x. P(x)) = \exists x. \
eg P(x)$. This will bring you (after simplifying $\
eg (a \rightarrow b)$ to $a ∧ \
eg b$ ) to $\exists x y. (horse(x) ∧ rabbit(y) ∧ \
eg outrun(x,y))$.
PS You should simply apply the rules, not change the rules such that the resulting formula reflects what you would like :).