Abstract: The present invention is a tool holder for supporting a cutting insert during a material-removal process. The tool holder comprises a body having a channel formed therein for receiving a finger that extends from a head. The finger is secured within the channel by an assembly screw that permits the head to move between a retracted position and an extended position relative to the body. When the head is in its extended position, the head is permitted to pivot relative to the body; however, when the head is in its retracted position a pair of shoulders on the body engage a pair of notches on the head, preventing the head from pivoting. A locking screw is also provided that locks the head to the body. The locking screw is designed so that as the locking screw is tightened, the head is urged against the body, thus providing a positive known position for the insert each time the head is moved.