An abelian category satisfy condition AB3 if it has small coproducts (hence cocomplete). Condition AB4 states that coproducts are exact: for any family of short exact sequences $0\to X_i \to Y_i \to Z_i \to 0$, the sequence $0\to \oplus X_i \to \oplus Y_i \to \oplus Z_i \to 0$ is exact.
What are examples of abelian categories satisfying AB3, but not AB4?
Condition AB5 says that direct limits are exact (or equivalently filtered colimits are exact).
What are examples of abelian categories satisfying AB4, but not AB5?