#!/bin/bash
#
#  tc uses the following units when passed as a parameter.
#  kbps: Kilobytes per second
#  mbps: Megabytes per second
#  kbit: Kilobits per second
#  mbit: Megabits per second
#  bps: Bytes per second
#       Amounts of data can be specified in:
#       kb or k: Kilobytes
#       mb or m: Megabytes
#       mbit: Megabits
#       kbit: Kilobits
#  To get the byte figure from bits, divide the number by 8 bit
#

#
# Name of the traffic control command.
TC=/sbin/tc

# The network interface we're planning on limiting bandwidth.
IF=eth0             # Interface

# Download limit (in mega bits)
DNLD=1mbit          # DOWNLOAD Limit

# Upload limit (in mega bits)
UPLD=1mbit          # UPLOAD Limit

# IP address of the machine we are controlling
IP=216.3.128.12     # Host IP

# Filter options for limiting the intended interface.
U32="$TC filter add dev $IF protocol ip parent 1:0 prio 1 u32"

start() {

# We'll use Hierarchical Token Bucket (HTB) to shape bandwidth.
# For detailed configuration options, please consult Linux man
# page.

$TC qdisc add dev $IF root handle 1: htb default 30
$TC class add dev $IF parent 1: classid 1:1 htb rate $DNLD
$TC class add dev $IF parent 1: classid 1:2 htb rate $UPLD
$U32 match ip dst $IP/32 flowid 1:1
$U32 match ip src $IP/32 flowid 1:2

# The first line creates the root qdisc, and the next two lines
# create two child qdisc that are to be used to shape download
# and upload bandwidth.
#
# The 4th and 5th line creates the filter to match the interface.
# The 'dst' IP address is used to limit download speed, and the
# 'src' IP address is used to limit upload speed.

}

stop() {

# Stop the bandwidth shaping.
$TC qdisc del dev $IF root

}

restart() {

# Self-explanatory.
stop
sleep 1
start

}

show() {

# Display status of traffic control status.
$TC -s qdisc ls dev $IF

}

case "$1" in

start)

echo -n "Starting bandwidth shaping: "
start
echo "done"
;;

stop)

echo -n "Stopping bandwidth shaping: "
stop
echo "done"
;;

restart)

echo -n "Restarting bandwidth shaping: "
restart
echo "done"
;;

show)

echo "Bandwidth shaping status for $IF:"
show
echo ""
;;

*)

pwd=$(pwd)
echo "Usage: tc.bash {start|stop|restart|show}"
;;

esac exit 0

Note that you will need to edit the variables at the top of the file to your own preferences.  There is no need for me to explain them here as the code has been well commented.
Once this has been completed, all you need to do is copy/paste the code above into a file, (say, /etc/init.d/shaping), change permissions to make it executable (chmod +x /etc/init.d/shaping) and then run: