If a simple IRA is rolled over to a safe-harbor 401K Plan is the two year minimum participation rule waived?

From the qualified plan yes. But from the SIMPLE IRA to the qualified plan within 2 years is not an "eligible rollover distribution" and would be subject to either the 10- or 15-percent penalty if under age 59-1/2.

I know Gary meant 10-25 percent as I acutally learned that from his book

Thanks Denise.