Contact Categories Menu
The dialog working with the contact categories is accessed through
the Tools » Contact Categories menu as seen in the picture
below:

Contact Categories Dialog
The dialog window allows the following operations: add, edit,
delete.

Add Contact Categories
To add a new contact category click on the first record (where it
says: "Click here to enter a new record") and complete the
following fields: Name(required, must be unique),
Description (required). To save the information press the OK
button.
Change Contact Categories
Select the row you want to modify and edit the desired fields. To
save the information press the OK button.
Delete Contact Categories
Select the rows you wish to delete and press the Delete key
or the according button from the toolbar. To save the information
press the Save button on the toolbar.