Most good stories start with a fundamental list of ingredients: the initial situation, conflict, complication, climax, suspense, denouement, and conclusion. Great writers sometimes shake up the recipe and add some spice.
Exposition
Life on the Streets
Early on, especially as Reese gets to know Mr. Hooft, we learn about the events that led to his incarceration. He couldn't count on his parents for anything; his father is an abusive drunk who's rarely around, and his mother is a drug addict. And then, on the streets, someone ratted him out for stealing prescription pads from a doctor's office. That's why he's in jail.
Rising Action
Double Trouble
For someone who doesn't like to fight, Reese throws a lot of punches. In trying to protect Toon, a fellow inmate who's young and feeble, Reese throws down with Toon's bullies, Cobo and King Kong, more than once. These fights are constantly threatening his participation in the work program (which Reese loves). Oh, and the police are investigating him for a murder he didn't commit. Basically, Reese could really use a spa day.
Climax
Quality Alone Time
After yet another fight with King Kong, Reese is placed in solitary confinement for what feels like forever (though it's actually five days). At first, he despairs; he even thinks about killing himself. But when Mr. Cintron stops by to tell him he can still work at Evergreen, Reese resolves to carry on. He also has an important realization: He needs to focus on making a better life for himself. Otherwise, it ain't gonna happen.
Falling Action
You Win Some, You Lose Some
Good news—just like that, the police drop their murder investigation against Reese. Bad news—he's not getting out of Progress on early release. But Reese knows that four more months at Progress isn't the end of the world. It's the rest of his life on the outside that's going to be hard.
Resolution
One Year Later
In the epilogue, we learn that Reese has managed to stay out of trouble in the year since his release. He's still working at Evergreen, and he's even allowing himself to dream a little about the future.