I have posted some photos. Sorry they're not clearer. My camera couldn't focus on the caterpillars. Here is a link that might be useful: Photos of caterpillars -sorry about the quality

That sounds like the same thing my Pink Diamond is doing. I moved mine a few weeks ago so that may be the reason. But I have kept it watered so I'm thinking it's not water stressed. I will be interested to see what others have to say...

If you can detect, with magnifying glasses, signs of fungi, it may be anthracnose (a fungal infection) but if you are located in northernmost states, it could be damage from late frosts. H. arborescens can show leaves with black lesions due to late frosts; if caused by late frosts, replacement (new) leaves will be fine and not develop the black lesions again. Sounds weird to be talking about late frosts though... where are you located??? See the link below for info on fungal diseases: http://www.aces.edu/pubs/docs/A/ANR-1212/index2.tmpl

Hello, alexakaran. If you notice that the leaves are browning from the edges inwards, it sounds like the shrubs need more water. Adding fertilizers now would force new growth but the existing stems are not able to supply the new growth with enough water in the Texas summers so this growth fizzles out and browns out. These ES shrubs were treated well and coddled at the wholesaler and the plant nursery but now they find themselves in a Texas summer and suffer from transplant shock. Their root systems were cut to fit into the ES plastic pots so they are not able to absorb as much water as they need. Top it off with temps that can get from the high 90s to the 110s and they are unhappy. In future years, they should improve and become better adjusted to your garden's; probably in 1-3 years. But they will not be immune completely. For now, check them out frequently from late May thru September and-or after windy days. Look for wilting episodes. Look for browning of the leaves from the edges inwards until the whole leaf browns out. Some green leaves may also dry out and turn papery if exposed to windy, drying breezes. Then they just fall down. I would also make sure that the root ball is not drying out and becoming hydrophobic; so drip water slowly in the area of the root ball like a drip irrigation system would. Alternatively, extract the shrubs from the container, careful not to break the root ball, and dunk them in water for several hours. Then replant them back. The root ball begins to repel water as it starts to dry out so this may help it recover. This time of the year, I have to increase the amount of water and the frequency of waterings. I would make sure they get about 1 to 1.5 gallons of water per watering and because they are in pots, you will need to water often. Sometimes, more than once a day in windy locations. Mind you, I am not talking about 60mph gusts, just a constant light breeze under 10mph, the types you get from a/c vents, can dry them when temps are so hot. I typically water the pots and stop when I see water coming out from the bottom. I pause for a while and then start watering again. Makes the soil absorb more of the water. Again, multiple waterings on a day may be needed if the soil dries out quickly due to slightly windy conditions. I always put some mulch on my wide containers (1/4 to 1/2 an inch) to minimize evaporation of water in these containers. And check the pots multiple times a day: insert a finger into the soil and water if the soil feels dry or almost dry. Water the soil early in the mornings and never water the leaves to minimize chances of mildew and other fungal issues. If the leaves wilt, they will recover on their own at night if the soil is moist. If the soil is dry when the leaves wilt, water the soil immediately. I would not try to force new growth with fertilizers this time of the year. Feel free to use low-nitrogen fertilizers now instead. I use liquid seaweed which is a "weak" fertilizer with lots of minor minerals and it can be feed thru the leaves... but clean your leaves first. Hope your shrubs get over the heat soon. When temps hit the daily 100s, no one wants to be outside trying to grow blooms or new leaves! ;o)