A tool holder for holding a cutting insert includes a head on which an insert-support surface is disposed. A plate is mounted on the head by a serrated connection, the head including fingers that form side surfaces disposed on opposing sides of the support surface. Each of the side surfaces includes a recess, wherein each side surface defines spaced apart contact areas. A slot extends through one of the fingers in spaced relationship to the side surface formed by that finger to render that side surface flexible. A passage interconnects an intermediate portion of that flexible side surface and an intermediate portion of the slot.