Hired swords and WBR

So when calculating Warband rating with a hired-sword do they count as a member?

So for instance would my warband rating be this :

Hero exp : 44
Henchmen exp :0
Members (9 [not counting HS]) x5: 45
Large Creatures: 0
Hired Swords: 16

total 105

or would it be

Hero exp : 44
Henchmen exp :0
Members (10 [counting HS]) x5: 50
Large Creatures: 0
Hired Swords: 16

total 110

I always thought the Hired Sword value was instead of the normal. So instance 1.

Balrog is right.