Sample Event Handler to set Permissions

This is something I have been seeing the need for in the forums for quite some time, and today I found an hour to find this. A request is often made to have an event handler that automagically sets the permissions on a list item so that only the author of the item can edit it, while other people with contributor permissions on the library can only read it.Sometimes the logic is more complex, but I think this sample code should be enough to get anyone started!