Use the "modified identity template" coding pattern.
An identity template for the things to be copied:
<xsl:template match="*">
<xsl:copy>
<xsl:copy-of select="@*"/>
<xsl:apply-templates/>
</xsl:copy>
</xsl:template>
supplemented by a rule that changes the things you want to change:
<xsl:template match="inc:targetType[@name='apple']">
<xsl:copy>
<xsl:copy-of select="@type"/>
<xsl:attribute name="name">orange</xsl:attribute>
<xsl:apply-templates/>
</xsl:copy>
</xsl:template>
Michael Kay
http://www.saxonica.com/
Author, XSLT 2.0 and XPath 2.0 Programmer's Reference