Rank 2 gives you a quest for a class specific legendary. Quest 3 is the same, but for an exotic. You get more guns per week the higher your rank is, and choices in how they are forged. For example, tier 3 gets to buy 3 different weapons and choose from 3 different pre selected drops.
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Yup, plus he gives you packages. I got a package at rank 2 yesterday that dropped a legendary Hakke shotty at 290-something atk.