I've had this debate a couple times now. My wording is bad for describing the bonuses, but you should get the point. The long short is, being rank 1 on the Queen does not inherently give you a 10% bonus. It gives you access to items that provide a 10% bonus each (2 of them). At rank 2, you now have access to 3.
http://www.twitch.tv/beflatline/c/5197932 - Highlight reel of the Twitch feed.
http://www.twitch.tv/beflatline/b/572922384 - Source of the FULL run, showing the bounties being completed and everything precluding the turn ins.
Math:
No Emblem / Class Item / Shader? 100% Reputation
1 item? 110% Reputation
2 items? 110% * 1.10 (cumulative 10%) = 121% Reputation
Boom. My apologies on the audio cutting in and out. Apparently Destiny doesn't like livestreaming on my end.
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