Here we have 5 variations on the Caterpillar exercise. The intention here is to frontload many sticking points that you will encounter down the road learning riffs. If you get used to these movements now, they won't shock you when they're introduced into a song later.
Caterpillar Variation 1 - Position Shifting
This will get you used to moving your whole arm to orient your fretting hand as needed, and move in 4 diagonal directions across the fretboard.
Caterpillar Variation 2 - String Skipping
This will get your picking hand accustomed to moving accurately in wider intervals. Aim to play the notes with even spacing.
Caterpillar Variation 3 - Precision Picking
Now we push that concept to it's limit. Many guitarists end up stumped by riffs with wide jumps, get ahead of it now with this exercise.
Caterpillar Variation 4 - Endurance and Stretching
Nobody likes doing it, but you certainly can play 5th fret and 10th fret on the same string. You may need to move your hand slightly to make it work, that's OK!
Expect to feel the burn on the back half of this exercise as your pinky gets a major workout.
Caterpillar Variation 5 - Trills
This one is tough. Remember to breathe and stay relaxed while you play.