Sec Form 4 Filing - Daunt John @ LIQUIDITY SERVICES INC - 2019-07-01

FORM 4 Check this box if no longer subject to Section 16. Form 4 or Form 5 obligations may continue. See Instruction 1(b).

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 STATEMENT OF CHANGES IN BENEFICIAL OWNERSHIP Filed pursuant to Section 16(a) of the Securities Exchange Act of 1934, Section 17(a) of the Public Utility Holding Company Act of 1935 or Section 30(h) of the Investment Company Act of 1940

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1. Name and Address of Reporting Person Daunt John 2. Issuer Name and Ticker or Trading Symbol LIQUIDITY SERVICES INC [ LQDT] 5. Relationship of Reporting Person(s) to Issuer (Check all applicable) _____ Director _____ 10% Owner X __ Officer (give title below) _____ Other (specify below) EVP, Chief Commercial Officer (Last) (First) (Middle) C/O LIQUIDITY SERVICES, INC., 6931 ARLINGTON ROAD SUITE 200 3. Date of Earliest Transaction (MM/DD/YY) 07/01/2019 (Street) BETHESDA, MD20814 4. If Amendment, Date Original Filed (MM/DD/YY) 6. Individual or Joint/Group Filing (Check Applicable Line) __ X __ Form filed by One Reporting Person _____ Form filed by More than One Reporting Person (City) (State) (Zip)

Table I - Non-Derivative Securities Acquired, Disposed of, or Beneficially Owned 1.Title of Security (Instr. 3) 2. Transaction Date (MM/DD/YY) 2A. Deemed Execution Date, if any (MM/DD/YY) 3. Transaction Code (Instr. 8) 4. Securities Acquired (A) or Disposed of (D) (Instr. 3, 4 and 5) 5. Amount of Securities Beneficially Owned Following Reported Transaction(s) (Instr. 3 and 4) 6. Ownership Form: Direct (D) or Indirect (I) (Instr. 4) 7. Nature of Indirect Beneficial Ownership (Instr. 4) Code V Amount (A) or (D) Price Common Stock 07/01/2019 M( 1 ) 1,608 A $ 0 36,116 D

Table II - Derivative Securities Acquired, Disposed of, or Beneficially Owned ( e.g. , puts, calls, warrants, options, convertible securities) 1. Title of Derivative Security (Instr. 3) 2. Conversion or Exercise Price of Derivative Security 3. Transaction Date (MM/DD/YY) 3A. Deemed Execution Date, if any (MM/DD/YY) 4. Transaction Code (Instr. 8) 5. Number of Derivative Securities Acquired (A) or Disposed of (D) (Instr. 3, 4, and 5) 6. Date Exercisable and Expiration Date (MM/DD/YY) 7. Title and Amount of Underlying Securities (Instr. 3 and 4) 8. Price of Derivative Security (Instr. 5) 9. Number of Derivative Securities Beneficially Owned Following Reported Transaction(s) (Instr. 4) 10. Ownership Form of Derivative Security: Direct (D) or Indirect (I) (Instr. 4) 11. Nature of Indirect Beneficial Ownership (Instr. 4) Code V (A) (D) Date Exercisable Expiration Date Title Amount or Number of Shares Employee Stock Grant ( 2 ) ( 3 ) 10/01/2025 Common Stock 2,283 2,283 D Employee Stock Option $ 8.17 ( 4 ) 10/27/2025 Common Stock 25,000 25,000 D Employee Stock Grant ( 2 ) ( 5 ) 10/27/2025 Common Stock 12,500 12,500 D Employee Stock Option $ 6.63 ( 6 ) 12/22/2025 Common Stock 3,756 3,756 D Employee Stock Option $ 6.63 ( 4 ) 03/24/2026 Common Stock 1,252 1,252 D Employee Stock Grant ( 2 ) ( 7 ) 03/24/2026 Common Stock 571 571 D Employee Stock Option $ 10.3 ( 8 ) 12/20/2026 Common Stock 2,300 2,300 D Employee Stock Option $ 10.3 ( 9 ) 12/20/2026 Common Stock 2,300 2,300 D Employee Stock Grant ( 2 ) ( 10 ) 10/01/2027 Common Stock 3,850 3,850 D Employee Stock Grant ( 2 ) ( 11 ) 10/01/2027 Common Stock 1,925 1,925 D Employee Stock Option $ 6.75 ( 9 ) 07/01/2028 Common Stock 100,000 100,000 D Employee Stock Grant ( 2 ) ( 10 ) 10/01/2028 Common Stock 4,834 4,834 D Employee Stock Grant ( 2 ) 07/01/2019 M( 1 ) 2,014 ( 12 ) 10/01/2028 Common Stock 2,014 $ 0 4,028 D Employee Stock Grant ( 2 ) ( 10 ) 12/04/2028 Common Stock 3,350 3,350 D Employee Stock Grant ( 2 ) ( 13 ) 12/04/2028 Common Stock 3,350 3,350 D Employee Stock Option $ 6.11 ( 9 ) 12/04/2028 Common Stock 20,800 20,800 D Employee Stock Option $ 6.11 ( 14 ) 12/04/2028 Common Stock 20,800 20,800 D

Reporting Owners Reporting Owner Name / Address Relationships Director 10% Owner Officer Other Daunt John C/O LIQUIDITY SERVICES, INC. 6931 ARLINGTON ROAD SUITE 200 BETHESDA, MD20814 EVP, Chief Commercial Officer Signatures /s/ Mark A. Shaffer, by power of attorney 07/02/2019 Signature of Reporting Person Date

Explanation of Responses:

( 1 )Represents the net issuance of 1,608 shares from the vesting of 2,014 restricted stock units from which the federal and state withholding due at the vesting of such restricted stock units was satisfied by the issuer withholding 406 shares. The reporting person relinquished the shares and the issuer cancelled the shares and returned them to treasury in exchange for remitting federal and state tax withholding obligations of the reporting person resulting from the vesting of restricted stock units. Shares withheld represent an exempt transaction pursuant to Section 16b-3(e). No shares were sold by the reporting person. ( 2 )Each restricted stock unit is the economic equivalent of one share of Liquidity Services, Inc. Common Stock. ( 3 )Twenty-five percent of this restricted stock grant vested on October 1, 2016 and thereafter 1/4th of the restricted stock grant will vest on October 1 of each year for three years. ( 4 )This option becomes exercisable, if at all, based on the Issuer's achievement of certain financial milestones. ( 5 )Twenty-five percent of this restricted stock grant vested on April 1, 2017 and April 1, 2018, and thereafter 1/4th of the restricted stock grant will vest on October 1, 2018, and October 1, 2019. ( 6 )Twenty-five percent of this option grant vested on October 1, 2016 and thereafter 1/48th of the option grant will vest each month for thirty-six months. ( 7 )These restricted stock units will vest, if at all, based on the Issuer's achievement of certain financial milestones. ( 8 )15/48th of this option grant will vest on January 1, 2018 and thereafter 1/48th of the option grant will vest each month for thirty three months. ( 9 )This option becomes exercisable, if at all, based on total shareholder return (TSR) milestones. TSR is calculated based on the change in a the issuer's stock price during the performance period, taking into account any dividends paid during that period, which are assumed to be reinvested in the stock. ( 10 )These restricted stock units vest, if at all, based on total shareholder return (TSR) milestones. TSR is calculated based on the change in a the issuer's stock price during the performance period, taking into account any dividends paid during that period, which are assumed to be reinvested in the stock. ( 11 )Twenty-five percent of this restricted stock grant vested on January 1, 2018 and October 1, 2018, and thereafter 1/4th of the restricted stock grant will vest on each of October 1, 2019, and October 1, 2020. ( 12 )Twenty-five percent of this restricted stock grant vested on April 1, 2019, and thereafter 1/4th of the restricted stock grant will vest on July 1, 2019, October 1, 2020, and October 1, 2021. ( 13 )Twenty-five percent of this restricted stock grant will vest on January 1, 2020 and thereafter 1/4th of the restricted stock grant will vest on each October 1, 2020, October 1, 2021, and October 1, 2022. ( 14 )15/48th of this option grant will vest on January 1, 2020 and thereafter 1/48th of the option grant will vest each month for thirty three months.

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