Yeah, that's him as Apocalypse's Horseman Death. After he'd had his adamantium sucked out, Apocalypse captured him and Sabretooth and pit them against each other. Whoever won would get the adamantium in Sabretooth's body and become the new Death. Wolverine beat Sabretooth because he believed that he could at least minimize the damage he'd cause, despite the brainwashing, while Sabretooth would just kill indiscriminately and not care, brainwashing or no. Eventually Angel pulled Wolverine back to the X-Men's side.